Daily Chart Art – July 23, 2013

EUR/JPY: 4-hour

EUR/JPY Chart

Are my eyes deceiving me or is that a rising channel I’m seeing on EUR/JPY‘s 4-hour time frame? The pair just found resistance at the top of the channel and appears ready to head right back down. Be careful though! Stochastic is almost in the oversold region already, suggesting that euro bears could run out of energy pretty soon. If you’re in the bull camp, wait for the oscillator to turn before jumping in a long position on a bounce.

USD/CAD: 4-hour

USD/CAD Chart

I’ve been pointing this setup for days now, and it looks like it’s finally ripe for the picking. USD/CAD has made its way lower and is within striking zone of the rising trend line. And get this, Stochastic is indicating oversold conditions with a bullish divergence to boot! Y’all better keep your eyes on this pair soon, fellas — a major rally might just be around the corner!

EUR/GBP: 4-hour

EUR/GBP Chart

This is why sometimes, you gotta leave those horizontal lines up on your charts! It seems that former resistance on EUR/GBP at .8590 is now serving as potential resistance. What’s more is that this lines up closely with the 50.0% Fib level, and Stochastic is still in oversold conditions. Is it time to buy? If you’re the patient type, you can wait till Stochastic crosses out of oversold territory or for a bullish candle to close before loading up on those long positions!

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.