Daily Forex Chart Art – Aug 8, 2014

GBP/CHF: Daily

GBP/CHF Daily Forex Chart

GBP/CHF Daily Forex Chart

Time for a reversal on this pound pair? GBP/CHF is finding resistance at the top of the rising channel on its daily forex time frame, indicating that a selloff might be in the cards. After all, stochastic is already making its way down, which means that sellers are in control of price action at the moment. A selloff could last until the mid-channel area of interest somewhere around the 1.5000 major psychological level or until the bottom of the channel at the 1.4700 mark. Make sure you set a stop above the top of the channel if you’re thinking of shorting!

USD/CAD: Daily

USD/CAD Daily Forex Chart

USD/CAD Daily Forex Chart

Now here’s my favorite break-and-retest scenario playing out on USD/CAD’s daily forex chart. The pair has been in a steady downtrend since March before it found support around 1.0600 and pulled back up to the 1.0900 levels. This could be a huge market correction though, as the pair is now finding resistance at the broken support zone near the 50% Fibonacci retracement level. At the same time, stochastic is starting to move out of the overbought area, reflecting a pickup in selling pressure. If the downtrend resumes, USD/CAD might soon find its way back down to the 1.0600 area or lower.

NZD/CHF: 4-hour

NZD/CHF 4-hour Forex Chart

NZD/CHF 4-hour Forex Chart

Kiwi bears, watch out! NZD/CHF is moving close to the bottom of the rising channel on its 4-hour time frame, which means that a bounce might take place sooner or later. The channel support lines up with the .7650 minor psychological level, which could act as a floor for the selloff and push the pair back to the mid-channel area of interest near .7800. Stochastic is climbing out of the oversold zone, which means that bulls have enough energy for a Kiwi rally. A stronger uptrend could even take NZD/CHF back to the top of the channel around the .8000 major psychological mark.

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.