Daily Forex Chart Art – Feb. 24, 2014

NZD/USD: 1-hour

nzdusd

How low can the Kiwi go? On its 1-hour time frame, the pair recently broke below the neckline of a head and shoulders pattern, indicating a possible downtrend. The pair has pulled up to the broken support level and seems ready to resume its drop. With stochastic still pointing down, NZD/USD might be on its way to test the previous lows around the .8250 level or make new ones!

AUD/NZD: 4-hour

audnzd

Now here’s a reversal chart pattern that’s just getting ready to play out! AUD/NZD seems to have gotten enough of its declines and may be ready to start a new trend. An inverse head and shoulders formation can be seen on its 4-hour chart and the pair has yet to break above the neckline around the 1.0900 major psychological level. Stochastic isn’t offering any good clues at the moment, but an upside break could be the start of a 500-pip rally.

AUD/JPY: 1-hour

audjpy

If reversals ain’t your thang, then here’s a simple potential range play for you. AUD/JPY is currently stuck in the middle of its range on the 1-hour time frame, forming a bit of consolidation around the 92.00 major psychological level. Stochastic is moving up, suggesting that a break higher might be likely. If that happens, the pair can still climb all the way up to the top of the range around 93.00. A downside break, on the other hand, could mean a move back to 91.00.

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

    I am not too keen on pattern trading but is that really a proper Head and Shoulders pattern on Kiwi h1? hmm…

  • Chuks

    Of course I am currently long the nzdusd at 0.8300 ready to take a loos at 0.8237

    • Big Pippin

      Looks like your long trade is going well so far! Did you keep it open?

      • Chuks

        Yes I did but booked upon retesting resistance at 0.8430. I am looking forward to a pull back for further possible long. Seems destined to the topside for a while unless of course something changes. I guess I will see it when it does.