Daily Chart Art – February 23, 2012

USD/CHF: 1-hour

USD/CHF 1-hour Chart

First up is a simple descending triangle setup on Swissy‘s 1-hour time frame. The pair is finding support at the .9100 handle, but judging from its lower highs, it looks like the pair is in for a breakout! Remember, descending triangles might usually break to the downside, but there are also times when the currency bulls win the tug-o-war. A stop below the .9100 handle is a good idea if you’re long on this pair, while the dollar bears can wait for .9100 to break before entering a trade.

USD/CAD: 4-hour

USD/CAD 4-hour Chart

Somebody call Happy Pip because USD/CAD‘s descending channel is just too irresistible! Not only is the pair flirting with parity at the moment, it’s also near the top of a descending channel on the 4-hour chart. Best to wait this one out for a bit though, as Stochastic hasn’t reached the overbought zone just yet. A stop above the channel would be cool if you’re shorting this pair, especially if you’re aiming for the bottom of the channel around the .9900 handle.

GBP/JPY: Daily

GBP/JPY Daily Chart

Position traders huddle up! GBP/JPY is sporting some nice dojis and reversal candles near the 126.50 area, which happens to be lining up pretty well with the top of a range in the daily chart. Not only that, Stochastic is also in the overbought region! A stop above the 126.50 area presents a good reward-to-risk ratio for those aiming for the 117.50 range support, but you can always aim for the 122.00 mid-range support if you’re not the position trader kind of guy.

Before you get carried away with all these chart patterns, remember that technical analysis is only half the story.

To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.

Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals.