Daily Chart Art – May 27, 2016

AUD/USD: 1-hour

AUD/USD 1-Hour Forex Chart

AUD/USD 1-Hour Forex Chart

First up is an easy peasy trend play on AUD/USD. The pair is currently testing a falling channel resistance, which is right smack at the 200 and 100 SMAs on the 1-hour charts. Shorting at channel resistance levels can get you the best reward-to-risk ratios, so you might want to whip out your trading journals and start strategizing for this one. Take care to place your stops way above the resistance areas!

GBP/AUD: 1-hour

GBP/AUD 1-hour Forex Chart

GBP/AUD 1-hour Forex Chart

GBP/AUD is about to test the 100 SMA on the 1-hour time frame, which is just below a rising channel support on the chart. What’s more, stochastic is sporting an oversold signal. Think the pound is about to gain pips on the Aussie? A long trade near the trend line could give you a decent trade if you believe that the pound is set to retest its previous highs against the Aussie. If you’re one of them pound bears though, then you could also wait for a break below the support levels before putting on a short trade.

EUR/GBP: 4-hour

EUR/GBP: 4-Hour Forex Chart

EUR/GBP: 4-Hour Forex Chart

Here’s one for countertrend traders out there! EUR/GBP looks like it’s bouncing from the .7650 minor psychological handle, which lines up with a falling channel support on the 4-hour chart. Be careful in buying this one though, as countertrend trades can be trickier than the good ol’ trend trades. In fact, countertrend trading isn’t for everyone, so make sure you’ve planned ahead if you’re planning on taking this setup!

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.