Daily Chart Art – February 20, 2014

USD/CHF: Daily

usdchf

Don’t look now but USD/CHF just formed a reversal candlestick right on a long-term support level! Stochastic is indicating oversold conditions, which suggests that a bounce could happen sooner or later, but I wouldn’t get too excited just yet. Waiting for the next daily candle to close above the high of the spinning top could confirm that a rally is in the cards, especially if stochastic starts climbing out of the oversold region at the same time.

AUD/USD: Daily

audusd

So far so good! The broken support level around the .9000 major psychological mark could keep holdin’ like a boss for AUD/USD, as this area lines up with the 38.2% Fibonacci retracement level. To top it off, a bearish divergence has formed with stochastic making higher highs and price drawing lower highs. Make sure you check if this setup meets the 9 Rules for Trading Divergences if you’re planning on shorting though!

EUR/CHF: Daily

eurchf

In the mood for a countertrend trade? Here’s a good one on EUR/CHF! The pair is trading inside a falling channel on its daily time frame but a bounce might take place sooner or later, as the pair is nearing the channel support. In fact, the 1.2200 major psychological level already seems to be acting as a floor for the recent selloff as stochastic is moving out of the oversold zone. If you’re planning on going long, make sure you set your stop below the bottom of the channel.

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.

  • Vikram Prajapati

    Try to give trade set up on North or South side but not expecting both side.