Daily Forex Chart Art – August 1, 2014

EUR/USD: 1-hour

EUR/USD 1-hour Forex Chart

EUR/USD 1-hour Forex Chart

Can EUR/USD keep grinding lower? It has been a slow and steady crawl for the pair, as a falling trend line can be drawn to connect the latest highs of price action. The pair is currently testing the trend line once more and it might hold as resistance since it lines up with the 1.3400 major psychological mark. Stochastic is still moving up though, indicating that there’s a bit of buying pressure left. If bulls are strong enough, they could push for an upside break from 1.3400 but if bears take over, EUR/USD might be on its way to make new lows.

AUD/USD: 1-hour

AUD/USD 1-hour Forex Chart

AUD/USD 1-hour Forex Chart

After that AUD/USD triangle breakout I showed y’all yesterday, the pair could be gearing up for a retest of the broken support zone. Using the Fibonacci retracement tool on the 1-hour time frame reveals that the 38.2% level lines up with the former support at the .9350 minor psychological handle. Stochastic is moving higher, which means that there’s enough momentum to take the pair back up to .9350. If that holds as resistance, price could make its way back to its recent lows near .9300 or head further south.

USD/JPY: 1-hour

USD/JPY 1-hour Forex Chart

USD/JPY 1-hour Forex Chart

Is that a bullish flag I’m seeing on USD/JPY’s 1-hour forex time frame? Fresh out of making an upside break from the descending triangle a few days back, USD/JPY just can’t seem to get enough of its rallies! According to our Chart Patterns Cheat Sheet, a breakout from this flag could be of the same height as the mast or the earlier move, which is about a hundred pips in this scenario. With that, if USD/JPY makes a strong break past 103.00, then it might make its way up to the 104.00 mark. Be careful since stochastic is moving towards the oversold area!

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.