Daily Chart Art – November 21, 2011

EUR/USD: 4-hour

EUR/USD 4-hour Chart

First up, here’s a look at everyone’s favorite pair, EUR/USD! This playa has been chillin’ like a villain this November, trading within a descending channel. It is currently finding resistance around the middle of channel, which happens to be near the 1.3500 handle. Given the recent wooziness in this pair, it might be best to wait till it tests either the bottom or the top of the channel before putting up a position. Keep an eye on the 1.3350 and 1.3650 levels as potential reversal points.

USD/CHF: Daily

USD/CHF Daily

If you’re a fan of picking reversal points, here’s a setup for you! After sinking to as low as the .8600 mark late last month, USD/CHF has made its way back up above the .9200 handle. The question is, do the bulls have enough to keep this party flowing? It seems that we’re seeing a double top in the making, as Stochastic is showing an overbought state, while last Friday’s candle formed a hanging man. I suggest waiting to see if we get a solid red candle close today, as it would give us a stronger signal to start selling USD/CHF.

GBP/USD: 4-hour

GBP/USD 4-hour Chart

Lastly, let’s hop on over to Lady Cable. After bouncing off the 1.5880 resistance zone late last Friday, the pair is now making its way back down to support at the psychological 1.5700 handle. With Stochastic showing strong downward momentum, I’d be wary about setting orders at 1.5700. Instead, it might be best to wait for some candlestick confirmation before going long 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.