Daily Forex Chart Art – May 12, 2015

EUR/NZD: Daily

EUR/NZD Daily Forex Chart

EUR/NZD Daily Forex Chart

Check out this trifecta of technical signals on EUR/NZD’s daily forex chart! The pair is climbing for now but it could turn upon hitting the 1.5500 major psychological mark, which lines up with the 61.8% Fibonacci retracement level and a former support area. In addition, a bearish divergence can be seen as price formed lower highs while stochastic drew higher highs. Once the selloff resumes, EUR/NZD could set its sights on its previous lows near the 1.4000 major psychological support. Make sure this setup meets the 9 Rules for Trading Divergences if you plan to hop in!

GBP/USD: Daily

GBP/USD Daily Forex Chart

GBP/USD Daily Forex Chart

If you think pound bulls are about to run out of steam, think again! Cable just seems to be getting started with its climb, as the pair has formed an inverse head and shoulders pattern on its daily forex time frame. Price seems to be breaking above the formation’s neckline around the 1.5500 handle already and could be in for close to a thousand pips in gains, which is roughly the same height as the chart pattern. Stochastic is moving up, confirming that buyers are still in control of price action and are ready to push the pair further north.

NZD/USD: Daily

NZD/USD Daily Forex Chart

NZD/USD Daily Forex Chart

How low can the Kiwi go? After weeks of tumbling down the forex chart, NZD/USD might soon be able to bounce once it hits the key support area around the .7200 to .7250 levels. Take note that this floor has held since the beginning of the year and may continue to keep further losses in check. Stochastic has been lingering in the oversold region for quite some time, indicating that sellers are exhausted and that buyers might soon step up their game. If a bounce takes place, NZD/USD could head back to the next area of interest around the .7400 handle, but a strong downside break below .7200 could signal that a longer-term selloff is in order.

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.