Daily Forex Chart Art – Mar. 18, 2014

USD/CHF: 1-hour

USD/CHF 1-Hour Forex Chart

USD/CHF 1-Hour Forex Chart

First up is a treat for the dollar bears. USD/CHF is consolidating at what looks like a bearish pennant on the 1-hour chart. If you’ve read your School of Pipsology then you’ll know that pennants are usually continuation patterns formed after strong moves. Of course, this setup could always turn into a symmetrical triangle play where price could break in either direction. In any case, you should be ready to trade possible breakouts if you’re planning on trading this pair!

USD/JPY: 4-hour

USD/JPY 4-Hour Forex Chart

USD/JPY 4-Hour Forex Chart

Here’s another dollar setup for ya! USD/JPY has just bounced from the 101.50 psychological area and is headed fast towards the 102.50 zone. Stochastic hasn’t reached the overbought region yet so we could still see the dollar pop up before encountering any major resistance. Will the bulls end their cause at 102.50 or will USD/JPY reach the 103.25 range resistance before showing weaknesses?

GBP/AUD: Daily

GBP/AUD Daily Forex Chart

GBP/AUD Daily Forex Chart

Don’t look now, but there’s a possible head and shoulders action on GBP/AUD’s daily chart! What makes this setup more interesting is that price is currently near the “neckline” areas. If this is indeed a head and shoulders pattern, then we’re talking about a 1,000-pip move in case of a downside breakout. Read up on trading head and shoulders patterns in case you haven’t tried trading them yet!

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

    Gbpaud took my long position down yesterday and is indeed looking wobbly these days. At the moment, I still class its status as range with bullish tone until a firm close below the 1.8300 level. If it gains the 1.8400 handle in the next few sessions, I will re-establish my bullish bias. If it falls as you pointed out, it should be a good swing trade

    • Big Pippin

      Good call on taking off your long position. Are you planning on adding a GBP/AUD short to your EUR/AUD trade?

      • Chuks

        I will with euraud at first. If GBPAUD breaks down as I expect too, then I shall be adding it on retest. For first impulse though, I am happy with euraud. But I will be playing both in subsequent sessions, if we break down.

  • Pepe

    Hello Pippin, I would like to ask you, what do you use Stochastic indicator settings in your charts. thank you.

    • Big Pippin

      Hey bud! I use slow Stochastic with a 14,3,3 setting. Hope this helps.

  • ibrahim

    good question pepe… hello diddy can you please tell us which setting you’re using on your stochastic? ??

    • Big Pippin

      I’m looking at slow stochastic with 14,3,3 settings

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