Daily Chart Art – November 22, 2011

EUR/JPY: 1-hour

EUR/JPY 1-hour Chart

First up, here’s a look at Cyclopip‘s archnemesis, EUR/JPY! Trading has been as tight as a pair of Pip Diddy’s old school flare jeans, as the pair has been trading within a descending channel with a height of just about 100 pips. Currently, the pair seems to be finding support at the middle of the channel, and seems prime to make another run at the upper resistance line. Watch out for a candle close above the 1.0400 handle, as it could signal a breakout in the making!

USD/CAD: 4-hour

USD/CAD 4-hour Chart

Aaaah… Breakout! Looks like Loonie players were listening to an 80’s soundtrack yesterday, as the pair broke above the resistance of a rising channel yesterday. The pair is now partying just below the 1.0400 handle. Will this prove to be the top of the week? If you’re patient, it might be best to wait for a retracement and a retest of the former resistance line. On the other hand, you can also set some orders above 1.0400 if you think buyers will continue to groovy up the charts!

NZD/USD: Daily

NZD/USD Daily Chart

Are these groovy shades are fooling me or am I seeing a potential double top formation on NZD/USD’s daily chart? The pair is now retesting support around the .7500 handle, and with Stochastic indicating oversold conditions, sellers may be running out of steam to keep on going. Instead of putting on a long position now though, I suggest waiting for more reversal candlesticks for more confirmation the Kiwi could bounce higher.

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.