Daily Chart Art – July 28, 2011

USD/CAD: 4-hour

USD/CAD 4-hour Chart

Start stretchin’ channel players, this one’s for ya! A few hours ago USD/CAD encountered resistance at the .9500 handle, which is lining up nicely with the top of the range on the 4-hour chart. And check it – there’s also a bearish divergence and an overbought signal! The bears can make a play from .9500 all the way to .9400 while the bulls can also wait for the pair to pop out of the channel before pulling the trigger.

GBP/JPY: 1-hour

GBP/JPY 1-hour Chart

I spy with my awesome eyes a strong support at the 127.50 area! Looking at GBP/JPY‘s 1-hour chart, it seems that the pound bulls have the level well supported…for now. The setup is currently on the bulls’ side with a bullish divergence and an oversold Stochastic signal, but we can still see a strong drop if the bears suddenly hustle some muscle in the markets.

EUR/JPY: 4-hour

EUR/JPY 4-hour Chart

Who wants to play EUR/JPY‘s rising wedge to get some cheese? EUR/JPY has been lollygagging along what seems to be a rising wedge on the 4-hour chart, but it looks like price action is about to get interesting. Aside from potential support at 112.00 and the rising trendline, Stochastic is also in the oversold region. Be careful though, as the bears could be planning their attack right now!

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. Check him out, playas!