Daily Chart Art – August 16, 2013

USD/JPY: 1-hour

USD/JPY Chart

Bring out the popcorn because the battle between the dollar bulls and bears is about to heat up! USD/JPY has just reached a mid-channel support on the 1-hour chart, which is made more interesting by the fact that stochastic is also in the oversold territory. Will the bears score another win today or will the dollar bulls reclaim the throne and push the pair to its previous highs?

EUR/AUD: 1-hour

EUR/AUD Chart

Rejected at 1.4600! Just when we thought that EUR/AUD had broken above its previous highs, the pair did a 180-degree turn and is now headed back down! Will the overbought stochastic signal be enough to drag it to its previous lows? Make sure you’ve read about range trading if you’re planning to trade this setup!

AUD/NZD: Daily

AUD/NZD Chart

Last up is one for my position trader homies out there! After steadily falling since the start of the year, AUD/NZD is lollygagging on what looks like a 500-pip bearish pennant. Is this a sign that the Aussie bears are losing steam or are the Kiwi bulls just gearing up for another battle? If you’re not set on shorting this pair yet, then you can always wait for a legit break below the pennant.

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.