Daily Forex Chart Art – July 24, 2015

NZD/JPY: 1-hour

NZD/JPY 1-hour Forex Chart

NZD/JPY 1-hour Forex Chart

Check out this range forming on NZD/JPY’s 1-hour forex time frame! The pair found resistance around the 82.80 level and seems to be heading back to the support at the 81.00 major psychological mark. However, stochastic is indicating oversold conditions, which means that sellers are already exhausted and might let buyers take over. At the same time, the 100 SMA looks ready to cross above the 200 SMA to reflect a pickup in buying pressure. In that case, a bounce back to the top of the range might take place and an upside break might even be possible if Kiwi bulls are strong enough. If that happens, a long-term term climb of the same height as the range might happen.

EUR/CHF: 4-hour

EUR/CHF 4-hour Forex Chart

EUR/CHF 4-hour Forex Chart

Breakout alert! After trading inside a symmetrical triangle pattern on its 4-hour forex chart, EUR/CHF broke to the upside and showed that it’s ready for more gains. The rally could last by around 200 pips, which is roughly the same height as the triangle formation. Stochastic has just reached the overbought area, though, which means that euro bulls need to take a break and possibly allow a pullback to occur. Price could retreat until the broken triangle resistance around the 1.0500 major psychological support before resuming its climb. Besides, the 100 SMA has yet to cross above the 200 SMA before confirming that further gains are possible. If euro bears are strong enough, they could still push for a move back inside the symmetrical triangle.

EUR/GBP: 4-hour

EUR/GBP 4-hour Forex Chart

EUR/GBP 4-hour Forex Chart

Waiting to catch a trend? You might wanna keep tabs on this descending trend line on EUR/GBP’s 4-hour forex chart. The pair is in the middle of a correction from its previous slide and using the Fib tool on the latest swing high and low shows that the 61.8% Fibonacci retracement level lines up with the trend line. The 100 SMA is below the 200 SMA, indicating that the downtrend is likely to carry on, while stochastic is nearing the overbought zone and could draw more euro sellers in. If you’re looking to jump in short, better wait for reversal candlesticks to form around the trend line or .7100 major psychological resistance.

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.