Daily Chart Art – August 29, 2013

EUR/USD: 4-hour

EUR/USD Chart

Bounce or break? What’s it gonna be, EUR/USD? The pair’s rising channel on the 4-hour time frame is still intact for now, but it appears that price is getting ready to break below support. Stochastic just turned from the overbought region and is headed lower, suggesting that bears are in control at the moment. Better keep an eye out for a strong break below 1.3300 if you’re shorting or watch out for reversal candlesticks if you’re thinking of going long!

AUD/USD: 1-hour

AUD/USD Chart

Aussie bears, get on this! If you have been eager to jump on a chance to short AUD/USD, then this could be your opportunity. The AUD/USD pair has just retraced to the 50% Fib, which is very close to a former support level. This broken support area could potentially serve as resistance now, especially since a bearish divergence has also appeared.

EUR/CHF: 4-hour

EUR/CHF Chart

It has been a choppy climb, but EUR/CHF has managed to make its way up the charts. If you connect the pair’s lows, you’ll see that it forms a rising trend line. Right now, price appears to be testing this trend line, presenting us with an interesting opportunity. You can either go long and hope that the market retests one of its former highs, or you can sell on the break and aim for a previous low.

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.