Daily Chart Art – January 15, 2014

EUR/AUD: 4-hour

euraud

Is EUR/AUD done retracing? On the 4-hour time frame, it looks like the pair is already finding resistance at the 38.2% Fibonacci retracement level but it may have room to pull up a little higher. After all, stochastic is still moving towards the overbought zone and has yet to cross down. In addition, the 50% Fib lines up with a former support level, which means that it could act as resistance moving forward.

GBP/AUD: 1-hour

gbpaud

Happy Pip seems to be on to something with her GBP/AUD trade idea this week! Not only has pair retraced to the area of interest she pointed out, it has also formed a bearish divergence! Stochastic hasn’t moved out of the overbought region just yet though, so make sure you check if this setup fulfills the 9 Rules for Trading Divergences if you plan to short.

EUR/GBP: 4-hour

eurgbp

Here’s another potential trend play that’s worth keeping on your watch list. EUR/GBP seems to be forming a falling channel on its 4-hour time frame as the pair grinds lower on its downtrend. It is stuck in the middle of the channel at the moment though and might ready to make a test of the bottom, as stochastic just reflected overbought conditions. If support holds, the pair could be on its way back to the channel resistance sooner or later!

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

    Does seem to me that euraud and gbpaud are done retracing lower and bullish resumption is imminent. I will set my buy limit euraud at 1.5208

    God knows what price it is headed in the foreseeable future.

    • Happy Pip

      Thank goodness I saw this comment of yours before I decided to set orders on GBP/AUD. Decided to wait for the Aus employment release, too. Patience pays, I suppose? Did you go long EUR/AUD or GBP/AUD?

  • FxSniper

    Yes I did. Both came very close to my orders but seeing the intraday actions especially on h4, I had no other option than to join at market. It is paying handsomely and the stage is now set for new multi year highs. Next week should be sweet on the back of what I am seeing on these pairs. See where AUDUSD is now? Fabulous pairs to deal with. I am also adding gbpchf to them. I missed out on yen crosses and will monitor them into weekend.
    Good luck to us!

  • FxSniper

    Another longer term long of mine comes in the form of gbpnzd. Sky is now the limit for that pair imo, which would invariably mean that our nzdusd is still very very wobbly

  • FxSniper

    It is reasonable to expect euraud and gbpaud to stage more retraces after today’s massive runs. I would put my money on 1.5320 minor support layer on euraud and maybe 1.84 on gbpaud. my projection is a whooping 1000 pips on both pairs off any of those levels. Looks like we have a way to run. What are you own targets going forward?