Daily Forex Chart Art – May 6, 2014

EUR/USD: 4-hour

EUR/USD 4-hour Forex Chart

EUR/USD 4-hour Forex Chart

Bounce or break? EUR/USD has been stuck inside the symmetrical triangle on its 4-hour time frame for quite some time now. Is the pair ready to bust out of the forex consolidation chart pattern? Stochastic is indicating overbought conditions, which means that euro bears could push the pair back to the triangle support near the 1.3800 major psychological level. This week’s set of top-tier economic catalysts could spark a breakout in either direction and this might last as much as 300 pips, which is the same height as the chart formation.

USD/CHF: 1-hour

USD/CHF 1-hour Forex Chart

USD/CHF 1-hour Forex Chart

If you’re up for a quick countertrend trade, then this USD/CHF setup might be just what you’re looking for. On its 1-hour forex chart, the pair is finding support at the bottom of the falling trend channel while stochastic is still reflecting a bit of buying momentum. An upside break from the current consolidation could confirm the potential rally back to the channel resistance around .8825 but a downside break could eventually breach the channel support.

GBP/USD: 4-hour

GBP/USD 4-hour Forex Chart

GBP/USD 4-hour Forex Chart

Don’t look now but there’s a neat lookin’ short technical setup on GBP/USD’s 4-hour forex chart! The pair has been trading inside a rising wedge as buyers reluctantly push the pair to new highs, but it seems that pound bears are just waiting for a chance to short at a good price. A bearish divergence has formed, with stochastic making lower highs and price making higher highs. Make sure you check if this setup fulfills the 9 Rules for Trading Divergences if you plan to jump in!

Chart Settings

Slow Stochastic: 14,3,3
100 SMA: Blue line
200 SMA: Red line

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.

  • ssilverhaze

    Let’s hope GBPUSD rising wedge will play out! nice trading idea and thanks!

  • Chuks

    I think gbpusd is still rising and has sight set at 1.700. Price action suggests the bulls still own this pair. Same with eurusd. I will be buying at 1.3845 if it comes down there

  • Chuks

    I already longed gbpusd at 1.6870 targeting 1.70 round