Daily Forex Chart Art – August 5, 2014

GBP/USD: 4-hour

GBP/USD 4-hour Forex Chart

GBP/USD 4-hour Forex Chart

Missed the breakdown on Cable? Don’t fret! You might still have a chance to join the selloff by hopping in on a retracement. Price appears to have found support at 1.6850 and may start to pull up to the Fib levels marked on the latest swing high and low on the 4-hour forex chart. The 50% level lines up with the 1.7000 major psychological level and is close to the broken trend line, which means that it might act as resistance moving forward. The 100 SMA is crossing below the 200 SMA, confirming that a longer-term downtrend is in the cards.

USD/JPY: Daily

USD/JPY Daily Forex Chart

USD/JPY Daily Forex Chart

Remember that USD/JPY triangle breakout I showed y’all a few days back? Well, it looks like the pair might need to retest the broken resistance area before heading any higher. Stochastic is moving down from the overbought zone, which means that dollar bulls are feeling exhausted and that bears might be in control at the moment. Using the Fibs on the breakout move indicates that the 61.8% retracement level lines up with the top of the triangle around the 101.50 minor psychological level, and this might act as support in case USD/JPY sells off from here.

GBP/CHF: 4-hour

GBP/CHF 4-hour Forex Chart

GBP/CHF 4-hour Forex Chart

Here’s another potential break-and-retest play on a pound pair! GBP/CHF has broken below the long-term rising trend line that has been holding since mid-March this year. This could be a sign that a reversal is in the cards, yet it appears that the pair is hesitating before moving further south. A quick pullback to the broken trend line might take place, as stochastic is indicating a pickup in buying pressure for now. The Fib tool shows that the 61.8% level lines up with the former trend line right around the 1.5350 minor psychological level.

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.