Daily Forex Chart Art – July 17, 2015

GBP/USD: 1-hour

GBP/USD 1-hour Forex Chart

GBP/USD 1-hour Forex Chart

Think the trend is your friend? Then you might wanna take a look at this neat little rising channel forming on GBP/USD’s 1-hour forex time frame. The pair is already testing the bottom of the channel near the 100 SMA, which just crossed above the 200 SMA and indicated that further gains are possible. If so, price could move up to the top of the channel somewhere around the 1.5700 to 1.5750 levels. Stochastic is pointing up anyway, so pound bulls are ready to push for more gains. If pound bears take over, though, GBP/USD could go for a break below the range support around 1.5570 and head further south.

EUR/AUD: 1-hour

EUR/AUD 1-hour Forex Chart

EUR/AUD 1-hour Forex Chart

Reversal alert! EUR/AUD seems ready to start a downtrend, as the pair recently formed a head and shoulders pattern on its 1-hour forex chart and broke below the neckline support around 1.4700. The chart pattern is around 400 pips in height, which means that the resulting selloff might be of the same size. In other words, a potential downtrend could take this pair down to the 1.4300 major psychological level. Be careful if you’re shorting at market since stochastic is pulling up from the oversold region, suggesting that a correction is possible. In that case, EUR/AUD might still pull back to the area of interest around 1.4700 to 1.4800 before heading lower.

AUD/CAD: 4-hour

AUD/CAD 4-hour Forex Chart

AUD/CAD 4-hour Forex Chart

Looks like this range on AUD/CAD’s 4-hour forex chart is still intact! The pair made a strong bounce off the support at .9431 earlier this month and seems to have its sights set on the top of the range at .9675. However, the 100 SMA is treading below the 200 SMA, suggesting that there’s still a lot of bearish pressure present. Stochastic has just reached the overbought region, indicating that buyers are feeling tired and might let sellers take the wheel. If that happens, AUD/CAD might continue to stall around its current levels near the .9600 major psychological resistance and resume its selloff pretty soon. Better wait for reversal candlesticks if you’re thinking of shorting!

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.