Daily Chart Art – December 23, 2013

USD/JPY: Weekly

usdjpy

It has been a wild ride for the Japanese yen, yet USD/JPY’s longer-term downtrend is holdin’ like a boss! On its weekly time frame, the falling trend line connecting the pair’s highs is still intact, as the resistance lines up with a former support level and the 61.8% Fibonacci retracement level. Stochastic has reached the overbought zone, suggesting that the selloff might resume next year, but don’t dismiss the chance of a strong upside break just yet!

GBP/USD: Weekly

gbpusd

Aaah… breakout! Here’s a setup that’s already hinting where GBP/USD might be headed next year. The pair has broken above the symmetrical triangle on its weekly time frame, indicating that further rallies might be in the cards. According to our Chart Patterns cheat sheet, the resulting breakout is roughly the same size as the height of the formation, which is a whopping 3,500 pips in this case.

USD/CHF: Daily

usdchf

Now here’s another potential trend play you should watch out for! The descending trend line on USD/CHF’s daily chart has held since mid-2013 and might continue to do so for the rest of 2014. Stochastic is indicating oversold conditions, hinting at a potential pullback to the Fib levels. Take note that the 61.8% Fib level is in line with the trend line, the .9100 major psychological handle, and an area of interest so it might be a strong resistance level later on!

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.

2 comments

  1. FxSniper

    GBPUSD is certainly looking great. For me, 1.7030 resistance will provide the proper context for the longer term direction of this pair. In the meantime, 1.6750-1.7050 remains my prime objective

    Reply
  2. Scott Phillips

    That USDJPY trendline is pretty speculative. Evidence is USDJPY is in a powerful uptrend, closing near the top pip for the year. Absolutely zero evidence of any selling pressure at all

    Reply

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