Daily Forex Chart Art – Mar. 25, 2014

USD/CAD: 1-hour

USD/CAD 1-Hour Forex Chart

USD/CAD 1-Hour Forex Chart

Remember that retracement setup that I pointed out yesterday? Well, a closer look at the 1-hour chart hints that we might be seeing a descending triangle instead. Watch for a break below the 1.1185 support if you’re one of them dollar bulls. Of course, as stated in the School of Pipsology, descending triangles don’t always break to the downside. Keep an eye out in case the bulls hustle their muscle and push this pair above 1.1200!

USD/JPY: 4-hour

USD/JPY 4-Hour Forex Chart

USD/JPY 4-Hour Forex Chart

If you love trading forex ranges then you’re gonna like what USD/JPY has in store for you! Since early February the pair can’t seem to make convincing breaks above 102.70 and below the 101.25 support. Tight stop losses below or above the support and resistance areas could get you a few quick pips if you believe that the pair is going to continue trading along the tight range. Read up on trading ranges if you haven’t tried it yet!

AUD/USD: 4-hour

AUD/USD 4-Hour Forex Chart

AUD/USD 4-Hour Forex Chart

Our last but definitely not the last setup today is a sweet rising wedge shaping up on AUD/USD’s 4-hour chart. Rising wedges usually hint at decreasing buying pressure from the bulls, which usually cause downside breaks of the pattern. The Aussie is just at the resistance area so it could be a while before we see any breakout. Still, the Aussie bears could take advantage of the setup by placing tight stop losses above the trend lines. Meanwhile, the bulls could wait for an UPside break in case traders overcome the rising trend line resistance.

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.

  • Zach

    What settings on Stoch do you use?

    • Big Pippin

      I use Slow Stochastic with 14,3,3 settings, bud.

  • Chuks

    To me USDJPY though lethargic for a while now is a good bullish bet off current consolidation moves. It has made a good rejection of 102.00 and unless flustered, that becomes the latest anchor for them bulls. 105 area remains in focus in my case. Don’t take my word for it on AUDUSD but I think the pair is fashioning an impressive bottom for a great bullish breakout. I disagree that that is a proper rising wedge on AUDUSD h4 that could qualify as a potentially decisive pattern to determine where the pair could be headed next. First, price action within said wedge has hardly reached the torso of the pattern when it popped above it. That is usually a signal that it is not a good pattern. Normally, it should play within the body until it gets near the apex before the price action can tell you anything meaningful. What I think you are looking at there is a cup formation with more or less a flat top , which would favor the bulls. The tea cup handle is almost complete and could be breaking up anytime soon. If anything, it is a teacup formation rather than a traditional rising wedge. There are other points to make about this massive pair on that time frame but there is no way to post up my chart for better illustration. But it is good to not that this pair is currently playing above a longstanding falling wedge if only you look from 1.0580 top around April 2013 and plot from there. Pair could also be tracking its current bear swing fibo retracement wave back to the 50% or 61.8% around 0.9330…….. Enough!

    • Big Pippin

      Whoa, that’s a lot to consider! Thanks for your two cents, buddy. There does seem to be more bullish signals for the Aussie on the higher time frames, even against other counterparts. Do you have open positions on the comdoll or are you planning to enter any setup?

      • Chuks

        Since I still have positions on gbpaud and euraud short, I didn’t plan on AUDUSD long but now, I have ample room for a position on the pair should it pull back to 0.9100 area.

  • Chuks

    Anywhere around 0.9100/0.9080 would represent a great buy point on AUDUSD for willing bulls. The Day bar rejection of support value is so obvious to warrant any second guessing.