Daily Chart Art – May 31, 2016

EUR/JPY: 1-hour

EUR/JPY 1-Hour Forex Chart

EUR/JPY 1-Hour Forex Chart

Breakout alert! EUR/JPY has broken above a falling channel resistance on the 1-hour chart. What makes this setup interesting is that the pair is now testing the broken resistance level. Are we looking at a resistance-turned-support situation? Stochastic is almost in the oversold territory, so a short-term bounce isn’t unlikely. A long trade at the current levels could make for a good trade if you believe that EUR/JPY is about to head for its new highs. Of course, you could also wait for a couple of bearish candles and go for a short trade instead if you think that the euro is just faking out against the yen.

NZD/USD: 1-hour

NZD/USD 1-hour Forex Chart

NZD/USD 1-hour Forex Chart

After bouncing from the falling channel support, NZD/USD looks like it’s on is way back to its resistance levels. The channel’s resistance near the .6750 minor psychological handle is a good spot to wait if you’re planning on shorting this one, but keep your eyes peeled for possible bounces at the 100 and 200 SMAs too. In any case, make sure your stop losses are well above the resistance area!

EUR/GBP: 1-hour

EUR/GBP 1-hour Forex Chart

EUR/GBP 1-hour Forex Chart

Here’s another one for the trend surfers out there! EUR/GBP is forming what looks like a bearish pennant on the 1-hour time frame. What’s more, the 100 and 200 SMAs on the charts are making it hard for the bulls to push the pair higher. Is EUR/GBP about to see more losses? Watch out for possible support levels just below the current price if you’re planning on shorting this one. Oh, and read up on trading bearish pennants if you’ve just heard about it!

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.