Daily Chart Art – May 17, 2013

GBP/JPY: 1-hour

GBP/JPY 1-hour Chart

What do you get when you combine higher lows with a stubborn resistance level? An ascending triangle! Right now, it looks as though GBP/JPY is forming just that – it’s creating higher lows while struggling to trade past 156.50. Y’all better keep an eye on this pair because things could get interesting really soon. Ascending triangles usually precede strong bullish moves, so we could just be moments away from a strong upside breakout!

EUR/CAD: Daily

EUR/CAD Daily Chart

Will you take a look at that beautiful chart pattern on EUR/CAD? This pair has been on a steady decline the past month, as it’s been trading within a descending channel. If you feel confident that this pattern will continue to hold, then go right ahead and short when price retests the falling resistance line. On the other hand, if you’re a little skeptical about power of the bears, then you can wait for a bullish marubozu close above the channel as a sign that the bulls are back in control.

USD/CAD: Daily

USD/CAD Daily Chart

Hold up! Is USD/CAD about to stage a reversal? Looking at the daily timeframe, it looks like price is about to encounter resistance at the falling trend line. Keep an eye out for the area around 1.0230 if you plan on trading the pair. Reversal candlesticks around the level could mean that USD/CAD may soon drop it like it’s hot and give you an opportunity to jump in on a short!

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.