Daily Chart Art – May 31, 2011

USD/CAD 4-hour

USD/CAD 4-hour chart

Aha! I think I spy with with my Ray-B eye a rising trend line on USD/CAD! Stochastic is also in the oversold area which could mean that the pair could continue trading higher. If you’re planning to root for the dollar today, you may want to keep tabs on the .9750 area and see if support at the rising trend line would hold. But be careful, ayt? I pointed out last week that USD/CAD is on a general downtrend on the daily timeframe. If price trades below the trend line, we may just see the pair tumble to support at .9650!

CAD/JPY 4-hour

CAD/JPY 4-hour chart

Remember that symmetrical triangle I pointed out on CAD/JPY? Well, the pair shuffled out of the consolidation and found its way to support just below the 83.00 handle. Now it looks like its forming a descending triangle with those lower highs. I would wait for price to convincingly close below 82.50 before shorting though. Who knows, those dojis at the support area could mean that the market is about to go loco for the Loonie and the pair could end up back at 83.50.

EUR/JPY 4-hour

EUR/JPY 4-hour chart

Oooh! It looks like the euro is pulling off a Taio Cruz on the yen, br-br-breaking out of that symmetrical triangle. If the euro has enough swagger, we may just see EUR/JPY rally past its previous high and test resistance at 118.00. Take note, however, Stochastic is already testing the overbought area. Could this could be nothing more than a fakeout? If it is, I won’t be surprised if EUR/JPY goes back to 115.00.

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!