Daily Chart Art – November 24, 2011

EUR/USD: 1-hour

EUR/USD 1-hour Chart

Remember that range I pointed out on EUR/USD yesterday? Well, support at the bottom of the range broke! However, with Stochastic already indicating oversold conditions, I have a feeling that the bears might take a break from their rally really soon. Perhaps we’ll see the pair retrace part of its move back up to the 50% Fibonacci retracement level around 1.3450, where it previously found support. If resistance around the area holds, EUR/USD could tumble back down to 1.3320 or even trade lower!

USD/CAD: 1-hour

USD/CAD 1-hour Chart

Are you a big fan of comdolls like Happy Pip? If you are, check out this sexy setup I found on USD/CAD. Looking at the 1-hour timeframe, we see that Stochastic has been in the overbought territory for a while. On top of that, the pair seems to be in consolidation which could imply that dollar bulls may already be exhausted. So if you’re planning to trade the pair, it would be a good idea to keep an eye out for the area between the 38.2% and 61.8% Fibonacci retracement levels as it could find support there. On the other hand, if you don’t think we’ll see a pullback, a break of yesterday’s high could mean that it’s on its way up to 1.0650.

EUR/GBP: 4-hour

EUR/GBP 4-hour Chart

Finally, here’s EUR/GBP for all you crosses fans out there! With the pair chillin’ like ice cream fillin’ at the 38.2% Fibonacci retracement level and Stochastic already nearing oversold conditions, there’s a good chance for us to see support at .8600 hold and for the bulls to hustle to the pair up the charts. However, if support doesn’t hold, it could mean that EUR/GBP is on its way back down to .8500.

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.