Daily Chart Art – August 2, 2013

USD/JPY: 1-hour

USD/JPY Chart

Do my eyes betray me or is that a falling channel in the works on USD/JPY? Price action has jumped off the key support area at 97.70 and is now making its way up to the top of the channel. With Stochastic now deep in overbought territory, we could see buyers run out of steam just as they’re approaching the key psychological 100.00 mark. Could this be where we’ll see some selling take place?

GBP/JPY: 1-hour

GBP/JPY Chart

Look out Guppy buyers! GBP/JPY is finding tough resistance at the 38.2% Fibonacci retracement level! Now that Stochastic has just crossed over and out of overbought conditions, it might be time to load up on some shorts. Watch out though, because if you see a bullish marubozu candle form, we may see this pair soar up to test the 50.0% or 61.8% Fibs.

NZD/CHF: 1-hour

NZD/CHF Chart

Not a pair I normally look up, but I couldn’t help but share this setup with y’all! It seems to me that the pair is currently forming a broadening formation. Should the formation hold true, we could see some selling take place, as price is testing the upper resistance level, while Stochastic is overbought as well. If you see a bearish candle form, you know what to do!

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.