Daily Forex Chart Art – Mar. 27, 2014

AUD/JPY: 4-hour

AUD/JPY 4-Hour Forex Chart

AUD/JPY 4-Hour Forex Chart

Who’s up for a countertrend trade? If you are, then you should know that AUD/JPY had just bounced from 95.00, which is right smack at a rising channel resistance. What’s more, Stochastic is about to leave the overbought territory! A stop just above the channel could get you sweet pips if you believe that the Aussie is headed for the channel support. Of course, you could always wait for momentum and more bearish candlesticks if you’re not too sure about buying the yen.

GBP/USD: Daily

GBP/USD Daily Forex Chart

GBP/USD Daily Forex Chart

Guess who’s back! No, it’s not Slim Shady. It’s Cable yo! The pair is back to retesting its rising trend line, which is hot because it’s also near a 61.8% Fib retracement on the daily chart. Not only that, but Stochastic has also just left the oversold region. Think the pound is headed higher? A stop below the 1.6450 area could still get you a sweet risk ratio if you think that the pair is about to make new 2014 highs.

EUR/GBP: Daily

EUR/GBP Daily Forex Chart

EUR/GBP Daily Forex Chart

Our last setup for today is a broader version of yesterday’s EUR/GBP setup. The pair encountered resistance at the .8400 psychological handle, which isn’t surprising since it’s also a falling channel resistance on the daily time frame. The pair still has room to fall though, if you believe that it will retest the channel’s support area. What do you think? Will the euro bears continue to drag the pair lower or will they stop at the mid-channel support near .8250?

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.

  • Zachary Tokar

    Sorry this is a newbie question, but how do you make such neat channel lines?

    • Big Pippin

      Thanks for your comment, bud.

      I don’t know what makes a “neat” channel line but I use the channel indicator on Xtick Extreme. As for spotting them, I usually just look for rising and falling trend lines (usually with 3 or more touches) and see if they also make channels.

      Hope this helps!

      • Zachary Tokar

        Thanks, I am going to check out xtick extreme. I have been following your blog everyday, and I am try to replicate your charts/strategy by myself on meta4 and the channels that they make (equidistant, fibb, etc) don’t look nearly the same, a lot of candles come out of the channel.

        thanks for your daily blog, it is so clear and logical

        • Big Pippin

          Thanks for checking out my blog regularly! See you around

  • Zachary Tokar

    oh xtick looks expensive! do you know any free sites? or is meta4 good enough for my level?

    • Zach

      MT4 is good enough for everyone. Many professional traders use MT4.

      • Big Pippin

        Yeah MT4 is pretty good too, you can also add neat lines and indicators there.