Daily Chart Art – May 30, 2016

AUD/JPY: 1-hour

AUD/JPY 1-Hour Forex Chart

AUD/JPY 1-Hour Forex Chart

Breakout alert! AUD/JPY is testing the 79.50 minor psychological (MiPs) handle, which lines up with a descending triangle resistance on the 1-hour time frame. What makes this setup more interesting is that stochastic is also chillin’ in the overbought territory. Think AUD/JPY is about to revisit its triangle support at 78.50? A short trade at the current levels with stops above the trend line could work if you’re one of them Aussie bears while a break-and-retest play could get you some pips if you’re trading a potential upside breakout. In any case, make sure you use wide stop losses. Crosses like these can be volatile, yo!

USD/CAD: 4-hour

USD/CAD 4-hour Forex Chart

USD/CAD 4-hour Forex Chart

I spy with my cool, bedroom eyes a possible reversal in the making! USD/CAD has just bounced from the 1.2900 handle, which has been an area of interest for the pair since October 2015. In fact, it’s looking a lot like the resistance level from April and May is turning out to be a support level for the pair. What’s more, the 100 SMA has just crossed ABOVE the 200 SMA on the 4-hour chart. Think we’re looking at an uptrend in the making? Keep close tabs on this one, bruh!

GBP/JPY: Daily

GBP/JPY Daily Forex Chart

GBP/JPY Daily Forex Chart

Trend traders huddle up! GBP/JPY is lollygagging at the 160.00 levels, which is where the 50% to 61.8% Fibonacci retracement levels are on the daily time frame. Right now the pair is also testing the 100 SMA. A bounce from the moving average line could point us to more downside moves for the pair. On the other hand, a successful break above the SMA and the consolidation would open the pair for possible upside moves all the way to its previous highs. What do you think?

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.