Daily Forex Chart Art – Mar. 2, 2015

USD/JPY: 1-hour

USD/JPY 1-hour Forex Chart

USD/JPY 1-hour Forex Chart

Anybody up for a countertrend forex setup on USD/JPY? The pair is currently testing the top of its rising channel on the 1-hour time frame and may head back south. Stochastic is almost in the overbought area anyway, which suggests that resistance near the 120.00 major psychological level might hold and push the pair back towards support at 119.00. However, if buyers stay strong, an upside break past the 120.00 handle is possible and this would mean more gains for USD/JPY. Just make sure you review our lesson on How to Avoid Fake Outs if you’re trading this one!

EUR/AUD: 1-hour

EUR/AUD 1-hour Forex Chart

EUR/AUD 1-hour Forex Chart

Divergence alert! EUR/AUD is currently testing the bottom of the falling wedge on its 1-hour forex chart and may be due for a bounce. A bullish divergence can be seen, with price forming lower lows and stochastic making higher lows, indicating that euro bulls could charge once more. If so, the pair could move back up to the top of the chart pattern around the 1.4500 major psychological level. On the other hand, if selling pressure remains strong, a downside break of support at 1.4300 might take place. Better check if this setup meets the 9 Rules for Trading Divergences if you’re planning to go long.

EUR/JPY: 1-hour

EUR/JPY 1-hour Forex Chart

EUR/JPY 1-hour Forex Chart

Here’s another potential countertrend play, this time on EUR/JPY’s 1-hour forex chart. The pair has been trading inside a descending channel for the past few weeks, indicating that a downtrend is in play. However, price is approaching the bottom of the channel around the 133.00 major psychological level, which might hold as support. If a bounce takes place, EUR/JPY could climb back to the top of the channel to test resistance at the 135.00 handle. Stochastic is moving lower and indicating a pickup in bearish momentum though, which means that this pair might be in for more losses!

Forex 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.