Daily Chart Art – October 25, 2011

EUR/JPY: 1-hour

EUR/JPY 1-hour Chart

Looks like EUR/JPY is doing what it does best – ranging! Over the past week or so, EUR/JPY has been consolidating, forming lower highs and higher lows along the way. Currently, the pair is now chilling below the falling resistance line at around 106.00. Will resistance hold or will it break? Take note that Stochastic is already in overbought territory, so the bulls might not have enough momentum to break through resistance. A bearish red candle may signal that the bears are back in control and could send the pair back to the bottom of the range.

AUD/USD: 1-hour

AUD/USD 1-hour Chart

Next up, let’s hop on over to the Aussie. Based on recent price action, it looks like this pair could be headed for new highs. Over the past few days, AUD/USD has climbed up the charts, breaking through triangles and bullish pennants. If we see the the formation of a bullish marubozu candle, I think that could be a strong signal that the pair could be headed for new highs around 1.0550.

USD/CAD: Daily

USD/CAD Daily Chart

Lastly, here’s another one for my homegirl Happy Pip and the rest of you who love those sexy, round figures! Once again, the Loonie is making its way back to parity, but this time from the topside. In the past, the 1.0000 mark has served as a solid resistance point, which now means that it could potentially hold as support. With Stochastic also sporting an oversold signal, I’ve got a feeling that some buyers may have their sights on parity. If you’re the patient type, you could wait to see how today’s candle closes before putting up a position.

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.

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