Daily Chart Art – January 6, 2014

AUD/USD: 1-hour

AUDUSD

I hope you’re ready to trade the comdolls because this trade setup is too good to miss! AUD/USD just bounced off from the .8950 minor psychological area, which is right around a previous resistance on the 1-hour chart. What’s more, Stochastic is also supporting a possible bounce as it’s still in the oversold territory. What do you think? Is this pair headed higher?

USD/CHF: 4-hour

USDCHF

Resistance alert! USD/CHF is knocking on a falling channel resistance on the 4-hour chart! What makes this setup more interesting is that it’s also near the .9050 psychological area. A break above the pattern could lead to a retest of the .9300 zone but the bears could also watch out in case the resistance holds and USD/CHF drops back down to .8850.

EUR/USD: 4-hour

EURUSD

Our last but definitely not the least setup is a EUR/USD range play. The pair is testing its mid-range support on the 4-hour time frame right around the time when Stochastic is hanging around the oversold area. Will the euro find support at the level or will it fall to the 1.3400 major psychological area before it finds its buyers?

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

    My reading shows me AUDUSD is now deeply bearish and targeting 0.8050 ultimately. I currently have a valid sell signal as per my strategy and will be reaching for 0.8550 in first leg. Risking 0.9019.
    Just as NZDUSD looks bearish to me atm and will be targeting 0.7100! God help me!!

  • Entered on the 1800 Bullish engulfing bar (0.8950) on a trendline 3 points were touching the trendline and a fourth one few pips away but as of now the price seems going south pass the trendline oh no

    • Big Pippin

      Hmm, the bears are still hustling their muscles! Where’s your stop loss on this trade?

  • Chanaka

    Hi,

    Can you please tell me what is the stoch setting you use ?

    Tnx

    • Big Pippin

      Hey there, Chanaka!

      I’m using 14,3,3 for my Stochastic indicator.

  • FxSniper

    I shorted 0.8964 and maybe I’m not looking well but I don’t see any bullis engulfer on my chart!

  • FxSniper

    0.8962 is my entry on AUDUSD, NZDUSD: 0.8264

    • Big Pippin

      Looks like you’re ahead by a couple of pips on AUD/USD mate! Are you planning on holding to your positions until the FOMC minutes?

      • FxSniper

        I should hold but that depends on what happens before the FOMC tho. I still maintain a really bearish tone on this pair with a break and close below 0.8800 all that I require to reconfirm that position. But first breaking through 1.8882 would be my intraday signal that indeed pair is favoring the bears in every sense. I normally don’t like holding AUDUSD short for a long time. So although my projection is around the 8050 figure, I will be doing this in swings. I believe we are currently getting ready for the first impulse of bear continuation. 0.8550 should be the immediate target for such an impulse so I am targeting that figure for now.