Daily Chart Art – January 28, 2014

EUR/USD: 1-hour

EURUSD

Downtrend alert! The euro bulls and bears are battling for supremacy around a falling channel resistance on the 1-hour chart. What’s more interesting is that it’s right below the 1.3700 major psychological handle. Stochastic isn’t sporting a sell signal right now so watch this pair closely to see if the setup holds or if the bulls manage to push the pair firmly above 1.3700.

AUD/USD: 1-hour

AUDUSD

Too excited to short the Aussie to wait for deep retracements? No problem! There’s an opportunity to short around the .8800 psychological level, which is near the 61.8% Fib on the 1-hour chart. Of course, you could also short at the 50% Fib in case the bearish divergence that I’m seeing plays out before it reaches .8800. In any case, the comdoll is already near the possible inflection points so don’t keep your eyes from this setup!

GBP/JPY: 1-hour

GBPJPY

Last one up for today is a potential resistance near GBP/JPY’s 170.50 minor psychological level. What makes it more interesting is that it’s also near a mid-range resistance on the 1-hour chart. What do you think? Is this pair headed lower or will it test the setup’s top at 173.00 before the sellers jump in?

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.

  • Chuks

    Eurusd is still consolidating its previous bullish swing and I believe that upon retest of support area near 1.36, buyers will have the upper hand yet again. This pair seems to me to be bent on 1.4280 area! and no, I think gbpjpy is headed way up and will be trading it accordingly. Today’s strong bullish bar could not be any more convincing to me. 179.00 here we come!

    • Big Pippin

      Great enthusiasm, bro!

      1.36 does seem to hold pretty well. Do you have open trades on this pair?

  • oyekunle

    we shoudnt forget their was a bearish reversal bar which gave hope for bears and initial movement is falling chanels wha we hv at resistance is just a retest’well lets be a litle patient.

    • Big Pippin

      Yep. I think this week’s FOMC statement could provide the catalyst for either a bounce or break.

  • Chuks

    If you’re talking about Eurusd Daily chart and above, I don’t notice any reversal bar. The one on h4 is not a reversal bar. Those bars are consolidating dojis. with a bullish slant since over-riding trend is bullish. Savvy traders should be focused on identifying the likely bottom and joining or at least buying on break above those h4 bars. Good luck

    • Big Pippin

      Good idea. I believe Huck is looking at higher time frames. This one is just the 1-hour chart for short-term traders. Can’t wait to see where this pair will go!

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  • oyekunle

    alright chucks