Daily Chart Art – December 2, 2013

NZD/USD: 1-hour

NZDUSD

Let’s start off with this trend setup on NZD/USD! The Kiwi is currently testing the .8150 area, which is right smack at the resistance of a descending channel on the 1-hour chart. What’s more, I’m seeing a bearish divergence with price forming higher highs and stochastic showing lower highs! Are the bears ready to attack at the level? A stop just above the pattern could get you a sweet risk ratio if you think that the pair would drop to its channel support.

EUR/AUD: Daily

EURAUD

I spy with my awesome eyes a retest of a major resistance area! EUR/AUD is having trouble breaking above the 1.4900 handle, which had effectively held off the bulls back TWICE in August. Think it will hold again this time? The overbought stochastic signal isn’t stopping the bears, that’s for sure. Entering a small position now could work if you’re not sure about the pair’s direction. You could also wait for more bearish candlesticks to form or stochastic to leave the overbought area. In any case, make sure that you got your stop losses covered when you enter a position!

CAD/JPY: Daily

CADJPY

If you can’t get enough of high reward-to-risk setups, then this is for you! CAD/JPY is almost at the 97.00 area, which is the top of a range that has been holding since the second half of the year. You could wait for the pair to actually reach 97.00 if you think that the Loonie still has room for gains, but you could also place a small position now if you believe that the bulls have already exhausted their efforts.

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.

  • FxSniper

    I agree strongly with near term bearish outlooks on euraud and cadjpy but I continue to fail to see nzdusd as necessarily bearish. I think that the jawboning has failed to beat the pair down in the manner that many bears were expecting and will continue to hold it bullish until 0.8100 completely gives way on a day closing basis. I can’t help but think that any intraday wash down henceforth particularly down into 0.8160 area is a false move and will net lots of bears for the slaughter house. just my opinion of course!

  • FxSniper

    I want to clarify that I view euraud as a very special case in which, I don’t expect any bear pressure to move below 1.4450 or it would represent a total collapse. It still remains in total uptrend and looks well poised to reach 1.54 level before year end. I will therefore have my buy limit at 1.4530 to take advantage of that expected continuation. So whatever short order off current important resistance should be expected to run its term by 1.4500 or just before it. Same temporary bearish status applies to gbpaud, which i expect to fall initially before continuing up.