Daily Chart Art – January 30, 2014

USD/JPY: 4-hour

USDJPY

First up is a countertrend trade on USD/JPY! The pair found support not only at a falling trend line but also the 102.00 major psychological handle. What’s more, Stochastic is almost at the oversold territory! You can wait for a couple more candlesticks if you’re not sure about buying the Greenback or you can also wait for a break below 102.00 if you think that the dollar selloff isn’t over yet.

USD/CAD: 4-hour

USDCAD

What ascending triangle?! USD/CAD doesn’t seem to like waiting for an ascending triangle to play out as it’s already making new highs on the 4-hour chart. Are we seeing a breakout though, or is the pair just gearing up for a retest of the rising trend line? Keep your eyes on this one, brothas!

GBP/AUD: 4-hour

GBPAUD

Last one up for today is a simple but beautiful trend play on GBP/AUD’s 4-hour time frame. The pair is hugging a rising trend line and it looks like it’s also finding support around a previous resistance area. A break above 1.9000 could push the pair to new yearly highs while a break below the trend line could drag the pair all the way to 1.8500. What do you think?

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.

  • David Chin Fong

    Hi Big Pippin,
    What stochastic setting do you use for the 4h charts? Is it 10,3,3? Simple or exponential?
    Also, on the GBP/AUD what’s the likelihood that the pair will breakout if the stochs are in overbought position? Thanks.
    David

    • Big Pippin

      Hey David,

      I use simple 14,3,3 for my stochs. In GBP/AUD’s case it looks the oversold signal was more accurate, at least since mid-January. It’s still something to consider although I wouldn’t exactly base my trades on it.

  • Chuks

    Yen crosses starting with usdjpy are confirming a top in my opinion. One more sharp rally and we are more likely to see a bigger shift to the down side. I am going to be looking at possible shorts on select yen crosses starting with the almighty gbpjpy and eurjpy around 170.000 and 140 or so levels respectively. I will be looking at audjpy too… usdjpy could be selling off big time at retest of 102.80 resistance layer. Yes gbpaud looks a nice bullish proposal but I like to wait for a retest of 1.8860 area or thereabout if possible or I would just joing with a wider stop. Good luck

    • Big Pippin

      Yeah the yen pairs are sporting some cool downtrends on the lower time frames. I’m looking forward to the sharp rally that you’re talking about. Maybe we’ll see short opportunities.

      Good luck and good trading!