Daily Chart Art – February 17, 2014

USD/CAD: 1-hour

USDCAD

Trend traders huddle up! USD/CAD is currently testing a mid-channel resistance on the 1-hour chart and it looks like it’s also being held down by the 100 SMA. Not only that, but Stochastic has also just left the overbought region. You could wait for a retest of the 100 SMA or even the channel resistance if you’re not too sure about buying the Loonie though.

GBP/JPY: 4-hour

GBPJPY

Here’s another trend trade for ya! GBP/JPY is right at a falling trend line resistance on the 4-hour chart. And is that a bearish divergence I see? Why, yes it is! A stop loss just above the trend line could get you a good risk ratio if you think that the pound is headed down against the yen.

EUR/USD: Daily

EURUSD

Breakout alert! EUR/USD had just broken out of a falling channel and it’s headed fast towards the 1.3800 zone. What do you think? Will the bears successfully defend the psychological area once again? Stochastic hasn’t reached the overbought area yet so you still have time to plan for a short trade. On the other hand, you could also buy the pair and take profits at the 1.3800 area.

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

    Good spots. I however think the diagram on gbpjpy represents a case of chasing price action rather than waiting for it to actually hit the resistance layer in question. I think the third intersection is supposed to happen around 172.50 before you intraday players can begin to even look for a short trade. Besides, the pair is totally in the hands of bulls going forward although some further retracements should be expected. Yet, I think that 172.50 area would represent a better point for bears if you are looking at the falling TL you pointed out. Other than that, I would prefer waiting for a retest of 167.60 area. While I wait for that to probably happen, I believe usdjpy and audjpy would represent better options for immediate buys. Good luck, mate!

    • Big Pippin

      Thanks for your two cents, mate!

      Right now it does look like the bulls aren’t done with this pair yet. Do you have orders at the 172.50 area?

      • Chuks

        No sir. I don’t plan on selling against the dominant trend on this pair. It can be suicidal. I would have loved to long 168. area but I reckon, I may miss the train. In otherwords, I will stick with uj and aj. hopefully, I catch on ej too. All those are extremely bullish. Guessing where to short isn’t my way on them atm.

  • Chuks

    I actually think gbpjpy is ready for bulls to pounce at current rates. Price action is indicating that the bulls should be taking over in no distant time provided, (in my case) risk is limited to 169.00 I believe bears will suffer this week if they try selling this pair before the appropriate levels