Daily Chart Art – January 16, 2012

AUD/USD: 4-hour

AUD/USD 4-hour Chart

First up is a setup from my man’s Hugh Jackman’s homeland, the Aussie! This pair has been on an upswing ever since hitting a low at .9900 in mid-December, forming an ascending triangle in the process. Currently, the pair looks to be retesting the rising support line. If support holds well, the Aussie could make its way back up and retest the resistance at 1.0380. Make sure you keep an eye on this pair, as a breakout seems imminent!

NZD/USD: 4-hour

NZD/USD 4-hour Chart

Similarly, NZD/USD has been on the rise over the past month, trading within a relatively tight ascending channel. The pair found resistance at the psychological .8000 mark late last week, but now that the pair has retraced a bit, will we see support at the .7900 handle? Playa, I suggest you wait for some candlesticks and more confirmation that support is holding before betting the club on this setup!

USD/CAD: 4-hour

USD/CAD 4-hour Chart

Lastly, here’s a look at the Loonie. Unlike its comdoll siblings, USD/CAD has actually consolidated recently and is stuck within a symmetrical triangle. A breakout seems to be in the cards, so make sure you’re ready once it happens! Watch out for strong candlesticks that close significantly above or below the triangle as a sign to jump in!

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.

  • Daily Chart

    The USD/CAD is a daily chart. Not 4hr.