Daily Forex Chart Art – May 8, 2015

EUR/USD: 1-hour

EUR/USD 1-hour Forex Chart

EUR/USD 1-hour Forex Chart

Confluence, baby! EUR/USD has a bunch of inflection points lining up around the area of interest at the 1.1250 minor psychological level, as this lines up with the rising trend line on its 1-hour forex chart. This also coincides with the 50% Fibonacci retracement level and a broken resistance area, which might hold as support from now on. In addition, stochastic is moving out of the oversold area, indicating that euro bulls might take control of price action soon. If that happens, EUR/USD might make its way back to its previous highs and beyond.

CAD/JPY: 1-hour

CAD/JPY 1-hour Forex Chart

CAD/JPY 1-hour Forex Chart

Remember that CAD/JPY rising trend line I showed y’all yesterday? Well, the pair just broke below the support area and might be in for a reversal! In case you missed the actual breakout move, don’t fret just yet. The pair seems ready to pull back to the broken support area for a quick retest. Using the Fib tool on the latest swing high and low on the 1-hour forex chart shows that the 50% retracement level lines up with the broken trend line near the 99.00 major psychological mark. Stochastic is climbing but is almost in the overbought region, which suggests that sellers could gain the upper hand soon.

USD/CHF: 1-hour

USD/CHF 1-hour Forex Chart

USD/CHF 1-hour Forex Chart

If you’re looking for a simple forex trend play, then you might wanna keep your eyes glued on USD/CHF’s 1-hour time frame. The pair has been moving in a steady downtrend, with a descending trend line connecting the recent highs. Price could be gearing up for another test of the falling resistance level, which is around the .9250 minor psychological resistance this time and near the 61.8% Fibonacci retracement level. Stochastic is already moving down from the overbought zone, indicating that dollar bears are ready to push the pair back down to its previous lows at the .9100 handle.

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.