Daily Chart Art – October 18, 2013

GBP/AUD: 1-hour

GBPAUD

Channel alert! GBP/AUD is sitting at a falling channel resistance on the 1-hour chart. Not only that, but stochastic is also in the overbought territory! A stop just above the pair’s previous highs could get you a sweet risk ratio if you think that the pair is about to make new lows. Don’t forget that you’re trading a cross currency though. Make room for enough volatility!

USD/CAD: Daily

USDCAD

Can’t get enough of the Greenback? Why not buy it against the Loonie? USD/CAD can’t break below the 1.0300 area, which is right around a strong support zone on the daily chart. And is that a bullish divergence that I see? Heck yeah it is! A stop below the support area could work if you’re planning on holding a position until it reaches its previous highs.

GBP/USD: Daily

GBPUSD

Who’s up for a major pair trade? GBP/USD absolutely rocked yesterday’s trading as it bounced strongly from the 38.2% Fib on the daily chart. Do you think it still has enough juice to reach the 1.6300 resistance? The oversold stochastic signal is hinting it could still pop higher! You gotta be creative in placing your stop losses though. I don’t think a stop below the Fib levels could still get you a good risk ratio!

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.