Daily Chart Art – January 22, 2014

EUR/USD: 1-hour

EURUSD1

I hope you’re up for a support-turned-resistance play! EUR/USD is back at the 1.3570 level, which had served as a solid support area early this month. Stochastic is almost at the overbought territory so we might see some bears come in and take advantage of a possible support-turned-resistance setup. We’re looking at the 1-hour chart so you can use tight stops on this one but remember that the bulls could still push the euro all the way to 1.3600 before we see significant euro weakness.

GBP/JPY: 4-hour

GBPJPY

Is that a rising wedge I see? Why, yes it is! Guppy looks like it’s gearing up for a wedge breakout as it consolidates on the 1-hour chart. The pair hasn’t reached the pattern’s resistance lines so watch out for the 173.00 major psychological level in case it serves as a catalyst for the bears to break the lower trend line support. Read up on trading wedges if you’re not familiar with the pattern yet!

CAD/JPY: Daily

CADJPY

Remember that broken range that we identified a few days back? Well, CAD/JPY is back into it! In fact, it’s testing a mid-range support right around the 95.00 major psychological level. Not only that, but Stochastic is lollygagging in the oversold territory. Think this yen cross is headed higher? A tight stop just above the mid-range level could get you a sweet risk ratio if you believe that it’s headed for its December highs.

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

    Nice points. I however differ on eurusd, which I believe should be rallying off 1.3500 support. I bought at 1.3549 with the hope of making it to 1.40 sometime. I do reckon it may take some more time but I will be patient enough. gbpjpy seems to me the best of the yen bunch with a multi year highs eyed. The Sterling is particularly very strong these days. I am waiting too for euraud and gbpaud

    • Big Pippin

      Good call about the pound, bro! Even EUR/USD only dropped to 1.3550 before finding support. Are you planning on trading EUR/USD and EUR/AUD at the same time?

  • FxSniper

    Yes. I normally just work with what is presented before me. If the set up is there, then it is there. I was waiting to rejoin euraud at 1.5200 but it does look like I will be joining at market with adjusted volume of course to reflect the change. If it breaks above 1.5304 in this New York session, I should be joining! Eurusd is one I may have to hold for a while. It is much slower in realizing swings so the necessary adjustments have to be made to reflect that reality. 1.42 seems the logical destination for this pair right now.

  • FxSniper

    I have in fact identified 1.5270 as the most likely point to buy euraud with logical stop right below 1.52 overall and I still believe this pair has another 1000 pips in it

  • FxSniper

    Eurjpy is another bone breaker that should be rallying immensely soon enough in my opinion and has a current logical price action buy signal on h4

  • FxSniper

    Final note: In case you are watching euraud too and don’t want any compromises, then I would suggested sitting on your hand and waiting for a possible move lower into the 1.5200 intraday support to buy more cheaply. I however am going long now with wide enough room to accommodate any such temporary short fall. my overall stop will be 1.5173. Bought 1.5290 and will redouble should it fall lower. Let’s go!

  • Vanilla Pip

    Boom! I just captured 80 pips thank you FXSniper!

    • FxSniper

      I am glad you hit that and it sounds like it was quick. What pair was that? Congrats

      • Vanilla Pip

        EUR/USD entered at 1.3556 and it fell from here during the night. London open it shot up within minutes.

        • FxSniper

          Great entry and o boy, eurusd went crazy. Consolidating right now and weekend flows should push it lower towards 1.36 for more robust buying pressure starting next week. So, I hope you will be looking to rejoin around 1.3600/ 1.3620