Daily Forex Chart Art – May 13, 2014

USD/CHF: 4-hour

USD/CHF 4-hour Forex Chart

USD/CHF 4-hour Forex Chart

How high can USD/CHF go? It seems that the pair’s rallies are about to come to a halt, as price is approaching the top of the range on its 4-hour forex time frame. At the same time, stochastic is indicating overbought conditions, which means that dollar bulls are getting exhausted. If the resistance around the .8920 level holds, USD/CHF might find its way back to the bottom of the range near the .8750 minor psychological support or at least until the middle at .8825.

GBP/USD: 4-hour

GBP/USD 4-hour Forex Chart

GBP/USD 4-hour Forex Chart

If you think the trend is your friend, then you should check out this potential pullback on GBP/USD’s 4-hour forex chart. Price is already finding support at the 100 SMA while a bullish divergence is starting to play out, but it could still make a deeper correction until the rising trend line. This is in line with the 200 SMA, which could also act as a support level and is in line with the 1.6800 major psychological support.

USD/JPY: 4-hour

USD/JPY 4-hour Forex Chart

USD/JPY 4-hour Forex Chart

Now here’s a trend and inflection point combo on USD/JPY! The pair just bounced off the bottom of the rising channel on its 4-hour forex chart, indicating that the uptrend could carry on. Stochastic has already reached the overbought zone but hasn’t crossed down yet, suggesting that there’s a bit of buying pressure left. USD/JPY could still make its way up to the mid-channel resistance near the 103.00 major psychological level or even climb all the way back to the top of the channel at 104.00.

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.