Daily Forex Chart Art – Nov. 5, 2014

EUR/USD: 1-hour

EUR/USD 1-hour Forex Chart

EUR/USD 1-hour Forex Chart

In yesterday’s Chart Art, I showed y’all how much further EUR/USD could fall. I’ve zoomed in to the 1-hour forex chart to pinpoint potential entry areas and realized that the pair seems to be making a short-term pullback. The broken support area seen on this time frame is right in between the 50% and 61.8% Fibonacci retracement levels, which might act as a resistance zone. Stochastic has already reached the overbought region and turned lower, indicating that euro bears are ready to push the pair back down to its previous lows. If selling pressure is strong enough, the 38.2% Fib might hold as resistance and EUR/USD could make its way to make new lows!

USD/CHF: 1-hour

USD/CHF 1-hour Forex Chart

USD/CHF 1-hour Forex Chart

Now USD/CHF’s 1-hour forex chart is just a flipped version of the EUR/USD setup above. As you can see, the pair recently broke above resistance at the .9550 minor psychological level and rallied close to the .9600 mark. Price is now retreating to the broken resistance, which is somewhere around the 50% to 61.8% Fibonacci retracement levels. Stochastic is starting to crawl out of the oversold region, reflecting a return in buying momentum. A bounce from any of the Fibs could take the pair back to its previous highs, but make sure you set your stop below the 61.8% level if you’re thinking of going long.

NZD/USD: 1-hour

NZD/USD 1-hour Forex Chart

NZD/USD 1-hour Forex Chart

Happy Pip already had her eyes locked on this NZD/USD break-and-retest forex setup since yesterday so I think it’s time for a quick update! The pair has already pulled up to the 50% Fibonacci retracement level, which is close to the support turned resistance at the .7800 major psychological mark. At the same time, stochastic is indicating overbought conditions, which means that Kiwi bulls are already tired. If sellers take over, NZD/USD could fall back to its previous lows near the .7700 major psychological level. A rally past the 61.8% Fib, however, could lead to a move up to the next resistance level near the .8000 handle.

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.