Daily Forex Chart Art – Apr. 24, 2015

USD/CHF: 4-hour

USD/CHF 4-hour Forex Chart

USD/CHF 4-hour Forex Chart

USD/CHF has been forming lower highs and finding support at the .9500 major psychological level, creating a descending triangle pattern visible on its 4-hour forex chart. The pair just came off a test of the triangle resistance and looks ready to test the bottom while stochastic is almost in the oversold area, hinting that a bounce could take place. If so, the pair could climb back to the triangle resistance around .9600 to .9650 once more. But if sellers stay in control, a downside break below .9500 and a longer-term drop might take place.

AUD/JPY: 1-hour

AUD/JPY 1-hour Forex Chart

AUD/JPY 1-hour Forex Chart

Is a breakout about to happen for AUD/JPY? The pair has been consolidating inside an ascending triangle pattern on its 1-hour forex chart and seems due for a breakout in either direction. Take note that the chart pattern is roughly 250 pips in height, which suggests that the resulting rally or selloff could be of the same size. Stochastic is pointing down, indicating that a move lower could be more likely. On the other hand, a strong candle close above the 93.00 major psychological resistance might confirm that Aussie bulls have gotten the upper hand.

GBP/AUD: 4-hour

GBP/AUD 1-hour Forex Chart

GBP/AUD 1-hour Forex Chart

Lastly, here’s a symmetrical triangle forex formation still holding for GBP/AUD. Price has just tested the triangle resistance near the 1.9350 minor psychological mark and looks ready to head south, as stochastic is starting to move down from the overbought region. A test of the triangle support at the 1.9200 major psychological level could be in order or a downside break might occur if selling pressure is strong enough. If that happens, the pair could be in for at least a thousand pips in losses, which is approximately the same size as the triangle pattern.

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.