Daily Forex Chart Art – Mar. 11, 2014

NZD/USD: 1-hour

NZD/USD: 1-Hour Forex Chart

NZD/USD: 1-Hour Forex Chart

Somebody holler at Happy Pip because this trend play is too good to miss! NZD/USD is lollygagging around the .8450 zone, which is right above a rising trend line and 100 SMA support on the 1-hour chart. If you’re a day trader and you think that the Kiwi is headed higher, then you could place your stop below the support areas and then continue to build your positions when the pair makes new weekly highs.

GBP/USD: 4-hour

GBP/USD: 4-Hour Forex Chart

GBP/USD: 4-Hour Forex Chart

Range traders huddle up! GBP/USD is testing the 1.6650 minor psychological handle. What makes this setup interesting is that the level is also a range support on the 4-hour chart. Not only that, but Stochastic is currently sitting on the oversold territory. Think the pound is headed higher? A stop loss just below the support area could get you a good risk ratio if you think that Cable is going back up to test the range resistance at 1.6780.

AUD/JPY: 4-hour

AUD/JPY: 4-Hour Forex Chart

AUD/JPY: 4-Hour Forex Chart

Check out this quadruple threat! AUD/JPY’s 93.00 handle would be a tough one to break for the bears not only because it’s a psychological area but also because it’s a previous resistance and a 38.2% Fib zone on the 4-hour chart. And let’s not ignore that Stochastic is about to hit the oversold territory! You can wait for a couple of bullish candlesticks or an actual oversold Stochastic signal before you enter or you could also buy now and place your stop losses below the Fib levels for a good reward-to-risk ratio. In any case, make sure you consider the potential volatility of yen pairs when computing for your stop losses!

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

    Currently bullish, yes, but NZDUSD has already shown a willingness to shed some of its recent profits across the time frames. As I write, it is standing parallel its distribution zone and I reckon it should be moving lower. The RBNZ News event tomorrow makes it all the more compelling holding off on more buys for now. I think it’s better to wait for a stronger retracement near 0.8340 mini support layer to hit the buy button once more. If that price movement coincides with said news event, I will be gladly loading it up at 0.8340 or thereabout.

    • Big Pippin

      Sounds like a plan! Besides, I think a rate hike is pretty much priced in for now so the reaction might be minimal unless the RBNZ follows it up with remarks indicating that it’s the first of many hikes.

      • Chuks

        Maybe. They gotta do what they gotta do at the end of the day. I am not too bothered by what they might or might not do. Anyways, we are waiting to see what they eventually come up with! Good luck with them!!

  • Chuks

    I am going ahead to short nzdusd at 0.8479 with stop just above recent high at 0.8521 and targeting 0.8350. Looks a decent scalp to me

    • Big Pippin

      Yep it did look like the rallies were weakening around those areas. How did you scalp trade turn out?

      • Chuks

        Nearly clipped my stop but I survived the assault and am still holding out for more. I am resigned to either a gain or a loss. My target remains 0.8350 area. That is where I think bulls should logically come in once more to take over.