Daily Forex Chart Art – Mar. 5, 2014

EUR/USD: 1-hour

EUR/USD 4-Hour Forex Chart

EUR/USD 4-Hour Forex Chart

Who’s up for a break-and-retest play? After hitting a roadblock at 1.3800, EUR/USD is now back at the 1.3750 area. What makes this interesting is that the area had served as a strong resistance in the second half of February. Not only that, but Stochastic is also currently in the oversold region. Do you think it’s time for the euro bulls to step in or is the euro done rallying against the Greenback?

CAD/JPY: 1-hour

CAD/JPY 1-Hour Forex Chart

CAD/JPY 1-Hour Forex Chart

Breakout alert! On the 1-hour chart we can see that CAD/JPY had just broken above the 92.00 major psychological handle AND its falling channel pattern. Be careful about buying this one though, as there’s also a potential bearish divergence on the chart. You can place a tight stop below the channel resistance if you think that the Loonie is headed higher but you can also wait for a retest of the 92.00 area if you’re not too sure about buying the comdoll.

GBP/AUD: 4-hour

GBP/AUD 4-Hour Forex Chart

GBP/AUD 4-Hour Forex Chart

If trading EUR/USD is not your thing, then you can trade a similar setup on GBP/AUD. The pair had encountered resistance at the 1.8800 area and is now back at the 1.8550 zone. The level was a major inflection point back in February so we might see a bit of tug-of-pip around the area. Take note that Stochastic is about to hit oversold, which could be good for the pound bulls. Remember to keep your stop losses wide in case you’re planning to trade this currency cross pair!

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.

  • John

    EUR/USD’s 1.3800 area resistance is very strong in my opinion. Unless we get some devastating US economic reports, I think this pair will not break through this area so easily. However, 50 pips are nice too. Without bad news on the Euro, the pair won’t go down either, so I’m betting on a ranging behaviour for the time being between 1.3800 and 1.3700, maybe 1.3750 if the support holds, just like you said.

    Just my unqualified personal opinion though 🙂

    • Big Pippin

      Yep, that 1.3800 level’s still holdin’ like a boss for now!

  • Chuks

    It is just about time to go long EURUSD and from here, I will be targeting 1.4250. I believe the pair is due for that long awaited break upwards. Any entry at or just near 1.3700 should be a good bet imho. Good luck fellow bulls!

    • Big Pippin

      Let’s see how it goes! It looks prime for a breakout in either direction and if does go to the upside, 1.4250 seems like a reasonable long-term target. Gonna keep my eyes locked on this one!

  • Chuks

    As for me, I am long at 1.3732 for the expected 500 pips! Mario, do something!!

    • Big Pippin

      Hahaha, good one bro! As for me, I think the NFP might do the trick. Let’s wait and see.

      • Chuks

        I’m still sitting on it and will probably sit it out throughout the week unless my stop gets clipped at 1.3629

        • Big Pippin

          So far so good on this trade, I suppose?

          • Chuks

            So far so good but 3 days after rejecting that massive resistance area, I decided to kill my first trade on this run at 1.3870. I am waiting to get long again on retracements potentially into 1.3700 zone. My ultimate target remains 1.4250.
            There is a real chance of shorting into 1.3700 one more time. I am in no hurry with this pair!