Daily Forex Chart Art – Oct. 21, 2014

EUR/CHF: 4-hour

EUR/CHF 4-hour Forex Chart

EUR/CHF 4-hour Forex Chart

Don’t look now, but EUR/CHF is testing the very bottom of its range on the 4-hour forex chart! Price has been bouncing back and forth between support at the 1.2050 minor psychological level and resistance around 1.2120 for the past couple of months, with a move back to the top likely to take place. Stochastic is on its way down though, which means that there might be enough selling pressure left to trigger a downside break of support. Better set those stops tight if you’re going for a bounce or wait patiently for a convincing breakout before hopping in short!

EUR/JPY: 4-hour

EUR/JPY 4-hour Forex Chart

EUR/JPY 4-hour Forex Chart

Now here’s a simple break-and-retest situation on EUR/JPY’s 4-hour forex time frame. The pair appears to be pulling up from its recent dive to the 134.00 levels and is testing the 38.2% Fibonacci retracement level. This area might hold as resistance, as it lines up with a broken support level and the 136.50 minor psychological mark. Stochastic is already showing a pickup in bearish momentum, which might be enough to take EUR/JPY back down to its previous lows. However, if bulls refuse to let up, a larger correction up to the higher Fibs might be seen.

EUR/NZD: 4-hour

EUR/NZD 4-hour Forex Chart

EUR/NZD 4-hour Forex Chart

Triangle alert! EUR/NZD has consolidated inside a descending triangle forex chart pattern on its 4-hour time frame, with the pair finding a floor at the triangle support. Stochastic is indicating oversold conditions, which means that a bounce back to the top of the pattern near the 1.6150 minor psychological mark might take place soon. But if euro bears are strong enough, they could push for break below the triangle support near the 1.6000 major psychological mark and set off a longer-term downtrend for the pair. After all, the formation is roughly 300 pips in height so the resulting drop could be of the same size.

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.