Daily Chart Art – December 16, 2013

USD/JPY: 1-hour

USDJPY

If you can’t get enough of trading the yen, then this setup is for you! USD/JPY is fast approaching the 102.80 area, which is near a rising trend line support on the 1-hour chart. Be careful though, as the pair would need to break 103.00 before it reaches the area and there’s a possibility that we could see a heavier selloff once the major level is broken. Read up on trading breakouts and fakeouts if you’re not too sure on how you can trade this sweet setup!

GBP/USD: 4-hour

GBPUSD

Can you say retracement opportunity? Cable is only a few jumps away from 1.6250, which has served as a solid resistance level in the past. What’s more, it’s also near a 38.2% Fib on the 4-hour chart! Stochastic is already in the oversold region though, so you might want to think about the possibility that the pair won’t even reach the level before it starts to go back on its way up. Watch this one closely, brothas!

EUR/GBP: Daily

EURGBP

Our last but definitely not the least setup is a simple trend plan on EUR/GBP. Right now it’s less than 100 pips away from the .8500 major handle near a falling channel resistance. Think the euro is in for losses against the pound? If you do, then you better start making your trading plans on this setup!

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

    usdjpy looks a good long bet around your 102.80 area. 103.00 ain’t bad either and this pair is aiming for the long haul in my opinion.
    When was the last time we ever saw eurusd rising alongside usdjpy? And eurusd is now targeting 1.4250 and should gbpusd come closer to 1.6200, It should follow suite. interesting year indeed!

  • FxSniper

    usdjpy closing below 103.000 by the end of today of course negates the bullish continuation view in favor of some more retracement.

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  • Adnan

    Between these three EUR/GBP is the most suitable Trade as far as Risk Reward Ratio is concerned…..

    • FxSniper

      Eurgbp is ever hardly a better bet than anything else even in terms of risk reward but well, I guess you spoke for yourself. First off, it is a frustratingly slow pair.

      • FxSniper

        Second of all, the proposed short is just a bear trap in my opinion. Right now, per my tactics, there is no handle on it for either directions but near and longer term, it is long and I expect it to stay that way for a good while. But there isn’t a handle for it yet in my book. If there was, I still won’t do eurgbp over usdjpy or gbpusd or anything esle except usdcad!

  • FxSniper

    The information I have on my daily chart is that the bulls are set to take over the pair once again and drive it as high as they wish. I see no downside potential on the pair yet. But Again, I am no fan of the pair and won’t put a lot of energy on it. But my little take on it is that it is still very much bullish with no room for bears for now. It has to close below 0.8330 for the bears to have any chance whatsoever.

  • FxSniper

    The best spot for bulls on eurgbp would be 0.8400 or better still 0.8393. I see pair rising as high as 0.88 or more! No chance for bears!