Daily Chart Art – June 13, 2011

AUD/USD: 1-hour

AUD/USD 1-hour Chart

Happy Pip may have gotten blown out of her long AUD/USD trade but the Aussie bulls could still have a fighting chance. AUD/USD has been moving inside a falling channel on the 1-hour chart and it seems ready to test the bottom of the channel, just above the 1.0500 major psychological support. Stochastic is in the oversold area, which means that Aussie bears need to take a breather. If the pair bounces from the bottom of the channel, it could climb to the top, which is near the 1.0550 minor psychological level.

USD/JPY: 1-hour

USD/JPY 1-hour Chart

Could USD/JPY’s downtrend be over? That inverse head and shoulders pattern on the 1-hour chart seems to suggest so! In fact, the pair just jumped above the formation’s neckline and could be ready to climb. From what I learned in the School of Pipsology, the size of the breakout should be about the same as the height of the formation, which is approximately 80 pips. Don’t believe me? Check out the Chart Patterns Cheat Sheet yourself!

USD/CAD: 4-hour

USD/CAD 4-hour Chart

If you’re in the mood for a longer-term trade, here’s USD/CAD’s 4-hour chart for y’all. The pair has been moving sideways for the past couple of weeks already, finding support close to the .9650 minor psychological level and resistance just a few pips above the .9800 handle. Price just hit the top of the range but Stochastic is still climbing, which means that buyers could take the pair higher. If resistance holds, Loonie bulls could take over and push the pair back down to .9650.

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 Economic Roundup. Check him out, playas!