Daily Chart Art – May 10, 2016

EUR/GBP: 1-hour

EUR/GBP: 1-hour Forex Chart

EUR/GBP: 1-hour Forex Chart

First up is an easy peasy trend play on EUR/GBP. The pair is currently testing a rising trend line that hasn’t been broken since late April. What makes this pair interesting is that it’s also being supported by the 100 SMA on the 1-hour time frame. Think the euro is in for more gains against the pound?

USD/JPY: 4-hour

USD/JPY: 4-hour Forex Chart

USD/JPY: 4-hour Forex Chart

Here’s one for dollar traders out there! USD/JPY is lollygagging at the 108.50 area, which is just below a 100 SMA on the 4-hour chart. Not only that, but stochastic is also sporting an overbought signal. Will the bears inspire a bounce from the area of interest or will the bulls push the dollar all the way to 111.00 before losing their momentum? A short trade at current levels could work if you think that the Greenback is on its way back down. Of course, you could also wait for a retest of the 111.00 area if you think that the bulls haven’t exhausted the hustle in their muscles.

GBP/NZD: Daily

GBP/NZD: Daily Forex Chart

GBP/NZD: Daily Forex Chart

Breakout alert! Those who are watching GBP/NZD’s falling channel should know that the pair is on its way to breaking above the pattern. Will we see a breakout or a fakeout? Right now the bulls are being held back by the 100 SMA on the daily chart and an almost overbought stochastic signal. Read up on trading breakouts and fakeouts if you’re not sure about handling this one!

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.