Daily Chart Art – August 7, 2013

USD/JPY: 1-hour

USD/JPY Chart

Drop it like it’s hot! After finding resistance at the top of the falling channel on the 1-hour time frame, USD/JPY plunged right back down to the bottom. It seems to be finding support in that area right now, as stochastic is moving out of the oversold region. If you plan to catch the bounce, make sure you set your stop below the recent spike down!

AUD/USD: 4-hour

AUD/USD Chart

Now here’s a setup I’m sure Happy Pip is already lookin’ at. AUD/USD recently broke below the support area between .9000 and .9050, but it’s now pulling back up to that zone. As luck would have it, the potential resistance-turned-support area is within the vicinity of the 38.2% to 50% Fibonacci retracement levels. Check out our lesson on Combining Fibs with Support and Resistance if you plan to trade this one.

EUR/GBP: 4-hour

EUR/GBP Chart

Looks like EUR/GBP’s uptrend is still intact! The pair has been moving inside a rising channel on its 4-hour time frame, and it just bounced off the bottom of the channel. At the same time, stochastic is moving up, which suggests that euro bulls are in control at the moment. If the upward momentum is strong enough, the pair could climb all the way back to the top of the channel!

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.