Daily Chart Art – August 6, 2013

GBP/USD: 4-hour

GBP/USD Chart

Sound the alarms because GBP/USD is approaching a critical area of interest — the 1.5400 handle! This level recently capped off the pound’s gains, but it also has quite a long history of acting as a turning point. If you zoom out into the weekly chart, you’ll see that it acted as a major reversal point as far back as 2010! With that said, don’t be surprised if we see another sharp rejection as price approaches this level, especially since we already have a bearish divergence in the works.

USD/CAD: 4-hour

USD/CAD Chart

Are retracement plays your thing? Then this setup might be right up your alley! USD/CAD recently found resistance at the 1.0400 major psychological handle, which lines up well with the Fib levels. If sellers can keep this pair from breaching this confluence zone, a retest of the former low at around 1.0270 could be in the cards for USD/CAD.

USD/JPY: 1-hour

USD/JPY Chart

With the dollar losing its mojo, USD/JPY has once again found itself within striking distance of the 97.70 handle, which was once a solid support level. Think it’ll hold again? Look to buy around the previous lows. On the other hand, if you’re expecting price to trade lower, you may be better off waiting for a breakout below 97.70.

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.