Daily Forex Chart Art – Aug. 29, 2014

GBP/CHF: 1-hour

GBP/CHF 1-hour Forex Chart

GBP/CHF 1-hour Forex Chart

Will GBP/CHF carry on with its rallies or will it find resistance at the trend line? The short-term SMA has recently crossed above the longer-term SMA, suggesting that price could keep climbing, but the falling trend line connecting the pair’s recent highs might still hold. After all, this lines up with the 1.5200 major psychological level, which has served as an area of interest in the past. At the same time, stochastic is almost in the overbought zone already, indicating that pound bears could take control of price action soon enough.

GBP/JPY: 1-hour

GBP/JPY 1-hour Forex Chart

GBP/JPY 1-hour Forex Chart

Here’s another potential forex trend setup that appears to be playing out! Even though the 100 SMA crossed above the 200 SMA recently, price is having trouble extending its gains past the falling trend line resistance. The 100 SMA also appears to be holding as a ceiling for now, with price poised to test the previous lows around the 170.50 minor psychological level if the selloff resumes. If pound bulls refuse to give way though, an upside break from the falling trend line could still be possible. Make sure you review our lesson on Trading Breakouts if you’re thinking of going long.

EUR/JPY: 4-hour

EUR/JPY 4-hour Forex Chart

EUR/JPY 4-hour Forex Chart

Are you a fan of momentum plays? Then you should definitely have a look at this trend line bounce on EUR/JPY’s 4-hour forex time frame. Price has already tested the falling trend line resistance and is poised to head lower, possibly making its way down to the previous lows. That’s still a little more than a hundred pips to go from its current level and who knows if EUR/JPY might even break below 135.50 to create new lows? Stochastic is moving lower anyway, indicating that euro bears have enough energy to push the pair down. Just make sure you set your stops right if you’re planning to catch what’s left of the potential drop!

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.