Daily Chart Art – November 18, 2011

AUD/USD: 1-hour

AUD/USD 1-hour Chart

Now that the Aussie is hanging around parity, could we see the pair head higher soon? Take note that the pair is also chillin’ at the bottom of a descending channel, and that Stochastic is sporting an oversold signal. The bulls may look at this as a good buying opportunity! Keep your expectations in check though, as the channel has been pretty tight, so I don’t expect to see this playa flying above 1.0050.

NZD/USD: 1-hour

NZD/USD 1-hour Chart

Next up, here’s an update on the Kiwi. After consolidating for the better part of this week, the pair has finally broken through support at .7630 and is now seems to be forming a bearish flag. I’d keep an eye out for another bearish marubozu candle close below the recent lows as a signal to jump on the sellers bandwagon.

USD/CAD: 4-hour

AUD/USD 4-hour Chart

Lastly, I’ve got a sweet setup on the Loonie. Since the beginning of November, this bad boy has been consolidating into an ascending channel, and is currently testing the upper resistance line. If you’re the patient type, I suggest waiting for a reversal candlestick and for Stochastic to crossover before putting up any short positions on this pair.

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.