Daily Chart Art – February 10, 2014

EUR/USD: 1-hour

eurusd

Huddle up, euro bears! EUR/USD’s short-term downtrend is still intact, with a falling channel forming on its 1-hour time frame. After bouncing off the bottom of the channel a few days ago, the pair looks ready to test the top of the channel this time. If you’re planning to short around the 1.3650 minor psychological resistance, make sure you wait for confirmation from reversal candlesticks.

USD/CHF: 4-hour

usdchf

Can’t tell where the Greenback’s heading? Well, this pair seems to be having trouble making up its mind! On its 4-hour chart, USD/CHF has formed a huge symmetrical triangle and may be in for further consolidation. The pair is testing the bottom of the channel at the moment, with stochastic almost in the oversold region. A bounce could take the pair back up to the top of the triangle, but a breakdown could also be possible!

GBP/USD: 4-hour

gbpusd

If you’re a fan of break-and-retest setups like I am, then this one’s just for you! Remember how GBP/USD broke below a rising trend line on its 4-hour time frame earlier this month? It looks like the pair is trying to make a retest of that former support level this time! Take note that the 38.2% Fib level is close to the broken trend line while stochastic is already in the overbought zone.

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.

  • Ugochukwu

    break and test is my way to go.

  • zmhxyh

    but this is against the trend.

    • zmhxyh

      I mean the GBP/USD