Daily Forex Chart Art – May 12, 2014

EUR/CAD: 4-hour

EUR/CAD 1-hour Forex Chart

EUR/CAD 4-hour Forex Chart

Missed the breakout on EUR/CAD? Don’t fret! You might still have a chance to hop in if the pair makes a pullback, possibly until the broken support level near the 61.8% Fibonacci retracement level. This is in line with the 100 SMA and is also close to the 1.5100 major psychological resistance. With that sharp breakdown though, the pair might be in for a shallow retracement so watch out for reversal candlesticks on the lower Fib levels as well!

EUR/JPY: 4-hour

EUR/JPY 4-hour Forex Chart

EUR/JPY 4-hour Forex Chart

Looks like EUR/JPY finally picked a direction! After months of moving inside a symmetrical triangle, the pair decided to make a downside break after the ECB rate statement last week. This signals that EUR/JPY could be in for a long-term downtrend and that the selloff might last as much as 800 pips, which is the same height as the chart pattern. Be careful since stochastic is already in the oversold zone, so a quick pullback might take place before the pair resumes its drop.

EUR/USD: Daily

EUR/USD Daily Forex Chart

EUR/USD Daily Forex Chart

Here’s an update on the daily forex price action of EUR/USD! In case you missed it, the pair already made a downside break from the bottom of the rising wedge. This indicates that further losses could be in the cards for this pair, with stochastic moving down from the overbought zone and reflecting strong selling pressure. Take note that the chart pattern is roughly 900 pips tall, which suggests that the resulting selloff could be of the same height.

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.

  • Chuks

    I don’t think Eurjpy triangle is genuine signal to be bear biased. I have longed the week open and will be looking out to see if at least h4 price value can top 141.50. That would be a good clue to continue longing. I have also decided to long the EURUSD with medium term target of 1.4250 and a stop limit value of 1.3663. On my platform, Eurusd is still within its triangle and the best base to hit long is 1.3740 but weekly open looks like it may be difficult to get that value. I had to re-adjust my volume because of that but am firmly bullish on this pair despite all the hullabaloo about the bears taking over. Let me know where you intend to sell, please. Eurcad would be a bit more dicey for me seeing that usdcad is steadily falling lower and will most likely fall for the next two weeks before a reprieve! Whatever it is, good luck, mate!

  • ichwan

    Give your best shoot per day