Daily Forex Chart Art – August 28, 2015

GBP/USD: 4-hour

GBP/USD 4-hour Forex ChartGBP/USD 4-hour Forex Chart

GBP/USD 4-hour Forex Chart

Is that a legit breakdown on Cable’s ascending triangle pattern? Lemme take off my groovy shades to take a closer look. It does look like price already broke below the triangle bottom on the 4-hour forex time frame, suggesting that the pair is in for further losses. The chart pattern is approximately 700 pips in height so the resulting selloff could last by the same amount of pips. However, stochastic is already indicating oversold conditions, which means that pound bears might need to take a break soon and allow the bulls to take over. If so, a retest of the broken triangle support around 1.5500 might be possible before GBP/USD heads further south.

EUR/USD: 4-hour

EUR/USD 4-hour Forex Chart

EUR/USD 4-hour Forex Chart

Think EUR/USD could carry on with its longer-term uptrend? Then you definitely gotta see this ascending channel setup on the pair’s 4-hour forex time frame! Price just got rejected on its latest test of resistance and seems to have its sights set on the channel support around the 1.1000 major psychological mark, which also happens to be near the moving averages. Speaking of those, the 100 SMA just crossed above the longer-term 200 SMA, indicating that the rally might resume sooner or later. Stochastic just reached the oversold area and euro bulls might start charging again once the oscillator moves up.

USD/JPY: 4-hour

USD/JPY 4-hour Forex Chart

USD/JPY 4-hour Forex Chart

Be careful, dollar bulls and yen bears! USD/JPY is currently hanging out an area of interest near the 50% Fibonacci retracement level, which might keep further gains in check. At the same time, the moving averages made a downward crossover, hinting that the selloff is about to resume. Stochastic is already in the overbought area also, which means that bullish momentum is fading and that selling pressure could return. If that happens, the pair could move back to its previous lows near the 116.50 minor psychological support or lower. On the other hand, a move past the Fib levels could send USD/JPY back up to the ceiling around the 125.00 levels.

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.