Daily Chart Art – January 11, 2011

USD/CAD: 4-hour

USD/CAD 4-hour Chart

Check this out, forex homies! USD/CAD is sporting a symmetrical triangle on its 4-hour chart and it could go either way. If you had been paying attention in the BabyPips.com School of Pipsology, you’d recall that the size of the breakout would be approximately the same as the height of the formation. In this case, the triangle is roughly 150 pips tall. If the pair breaks out to the top, it could rally all the way up to the 1.0050 area, which served as a former support level. On the other hand, if it breaches the bottom of the triangle, it could dip until .9800.

USD/CHF: 4-hour

USD/CHF 4-hour Chart

Will USD/CHF make another run for parity? The pair has been lollygagging in a bullish rectangle for the past couple of candles on the 4-hour chart now, and it looks like the bulls and bears are in for a battle. As the best forex school in the hood tells you, a rectangle shows a period of consolidation wherein the buyers and the sellers are on a gridlock as to the pair’s direction. It will eventually break out, so make sure you stick around to see all the action! A bullish break could push the pair all the way to parity, while a bearish move might drag the pair to the .9600 handle.

GBP/JPY: 4-hour

GBP/JPY 4-hour Chart

For y’all pound bulls out there, don’t count your lucky stars just yet! GBP/JPY has been rising steadily in the 4-hour chart, but has not been able to break past the 129.30 handle. Some of my forex homies tell me that ascending triangles could drag the pair to the same height as the triangle, or in this case the 127.50 handle. But others also tell me that it could break past the resistance, and even reach 130.00. Keep close tabs on this one, will ya?