Daily Chart Art – January 17, 2012

USD/JPY: 4-hour

USD/JPY 4-hour Chart

Over the past two weeks, trading on USD/JPY has been just like Lebron’s play in the 4th quarter – tight! The pair has been stuck in consolidation mode, and currently appears to be forming a symmetrical triangle. This doesn’t mean though, that we shouldn’t be keeping an eye on it. A strong candlestick close above or below the triangle may signal that a breakout is in play, so be ready to act when it happens!

USD/CHF: 4-hour

USD/CHF 4-hour Chart

Next up is a look at the Swissy. This sexy lady has been on a steady uptrend the past month, but is currently forming a bullish pennant and finding resistance around .9560. If you’re bullish on this pair, you can either play a break above .9600 or if you’re the patient type, wait for a pullback and retest of the rising trendline around .9430.

EUR/USD: 1-hour

EUR/USD 1-hour Chart

Last, but not least, here’s a setup on my buddy Pipcrawler‘s archnemesis, EUR/USD. After dropping late last week, EUR/USD has had a slow start to the week and is now trading within what appears to be a bearish pennant. Will the bulls charge in and push it back to recent highs? Or will the bears drag the euro to new lows? Look for candlestick closes above 1.2700 or below 1.2650 as a signal of what direction you should hop on!

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.

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