Daily Forex Chart Art – Nov. 4, 2014

USD/JPY: Weekly

USD/JPY Weekly Forex Chart

USD/JPY Weekly Forex Chart

How high can USD/JPY go? The pair just broke through several resistance levels in the past few days and seems ready to bust through more! It could have its sights set on the next long-term resistance area at the 122.00 major psychological mark, which has held for more than a decade. Take note though that stochastic has already reached the overbought area, which means that buyers are feeling exhausted from the climb and may be looking to take a break soon. If that happens, USD/JPY could make another major correction before heading further north.

EUR/USD: Weekly

EUR/USD Weekly Forex Chart

EUR/USD Weekly Forex Chart

As for EUR/USD… How low can it go?! The pair recently broke below a major support area and pulled up for a quick retest before resuming its drop. Right now, it seems to be heading further south and may be aiming for the next long-term support at the 1.2050 area. Stochastic is already indicating oversold conditions but the oscillator hasn’t crossed up yet, which means that a bit of selling momentum is still present. If you’re bearish on this pair, it’s not too late to hop in the selloff, which is still more than 400 pips away from the floor on the weekly forex chart.

AUD/USD: Daily

AUD/USD Daily Forex Chart

AUD/USD Daily Forex Chart

Think AUD/USD has reached a bottom? The pair is testing the key support zone at its yearly lows once more, still figuring out whether to make a bounce or a break. Stochastic is moving down, suggesting that Aussie bears are in control of price action at the moment. In this case, AUD/USD could have a chance at breaking below the .8650 minor psychological support and creating new lows. However, if bulls take over, a strong bounce could take place and push AUD/USD back up to the nearby resistance at the .8850 minor 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.