Daily Chart Art – October 21, 2013

EUR/USD: 1-hour

eurusd

Is a pullback in the cards for EUR/USD? If that’s the case, then it’s time to whip out my handy-dandy Fibonacci retracement tool! Using the recent swing low and high on the 1-hour time frame, we can see that the 50% Fib level lines up with a former resistance level. That coincides with the 1.3600 major psychological level, too! With stochastic moving lower, euro bears might just take the pair to that area of interest before letting the bulls take control.

GBP/USD: 4-hour

gbpusd

If you think Cable’s gonna keep climbing, then this setup is for you! The pair is currently trading around the middle of the rising channel on the 4-hour time frame and seems ready to reach the top. Take note though that stochastic is already in the overbought region, which suggests that pound bulls are feeling exhausted. Another test of the channel bottom might be in the cards then!

USD/JPY: Daily

usdjpy

Looks like USD/JPY is still stuck inside its symmetrical triangle on the daily time frame! Will it finally make a breakout soon? And which way will it go? Stochastic is pointing down and hinting at a downside move at the moment, but the bottom of the triangle can still hold as support and push the pair higher. Make sure you review our lesson on Trading Breakouts if you plan to trade this one.

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.