Daily Forex Chart Art – Aug 11, 2014

EUR/JPY: 4-hour

EUR/JPY 4-hour Forex Chart

EUR/JPY 4-hour Forex Chart

Think the trend is your friend? Then you might wanna consider trading this EUR/JPY falling trend line setup on the 4-hour forex chart. Price is pulling back up to the descending resistance area, which happens to line up with the 100 and 200 SMAs. Stochastic is almost in the overbought zone, which suggests that euro bears could take control of price action sooner or later. Watch out for reversal candlesticks around the 137.00 major psychological level if you’re thinking of shorting.

GBP/AUD: 1-hour

GBP/AUD 1-hour Forex Chart

GBP/AUD 1-hour Forex Chart

If you’re in the mood for a simple forex range play, this short-term setup on GBP/AUD’s 1-hour chart could be what you’re looking for. Price is stalling after a sharp drop but looks poised to test the bottom of the range at the 1.8025 support zone. Stochastic is already in the oversold zone though, indicating that pound bulls are ready to charge. A bounce from the current levels might last until the top of the range near the 1.8200 major psychological level while a selloff could push GBP/AUD to the range support.

AUD/CAD: 4-hour

AUD/CAD 4-hour Forex Chart

AUD/CAD 4-hour Forex Chart

Last but not least is this break-and-retest situation on AUD/CAD’s 4-hour forex chart! Price has already broken below the rising trend line, indicating a potential reversal, yet price found support near 1.0100 and bounced right back up. AUD/CAD appears to be finding resistance at the broken trend line and moving averages though, which means that the selloff might resume in a while. After all, stochastic is already reflecting overbought conditions and showing that Aussie bears are ready to jump in. A drop could last until the previous lows or even lower!

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.