Daily Chart Art – November 23, 2011

EUR/USD: 1-hour

EUR/USD 1-hour Chart

First up, let’s take a look at EUR/USD ranging like a Range Rover on the 1-hour timeframe. Will the range hold? That’s the same question Pipcrawler is asking in his latest post. If you feel like rooting for the dollar just like him, you may want to short around the resistance area at 1.3550. On the other hand, if you think the euro will pare its losses soon, keep an eye out for reversal patterns around last week’s lows at 1.3450.

USD/CHF: 1-hour

USD/CHF 1-hour Chart

Whoa! Is that a symmetrical triangle I see on the 1-hour chart of USD/CHF or is my ‘fro just messin’ with my vision? Nope! With the pair making higher lows and lower highs, I’m positive that what I’m seeing is in fact a triangle. This chart pattern suggests that bulls and bears are neck-and-neck in their joust for pips. So in trading the pair, it might be better to wait for a breakout instead of jumping in at market. A strong bullish break above yesterday’s high at .9190 could signal that the pair would retest the resistance area around .9220, and possibly even trade higher. Meanwhile, if USD/CHF drops below .9100, it could mean that there are still enough bears in the market to hustle the pair all the way down to .9000.

GBP/USD: Daily

GBP/USD Daily Chart

Feelin’ bullish for the Cable? If you are, then this setup on the daily timeframe may just tickle your fancy! Yesterday’s candlestick closed as a spinning top at the previous resistance area and the 61.8% Fibonacci retracement level. On top of that, Stochastic is already indicating oversold conditions! If support holds, we may just see the pair rally all the way back up to 1.6100. Just be careful and don’t get too excited buying the pair just yet though. Who knows, bears may not be done yet and we could see GBP/USD tumble back to its previous low at 1.5350.

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.