Daily Chart Art – May 6, 2016

USD/CHF: 4-hour

USD/CHF: 4-hour Forex Chart

USD/CHF: 4-hour Forex Chart

Let’s start with a hot one for the dollar traders! USD/CHF is about to hit the .9700 major psychological handle, which is right smack at a falling trend line resistance on the 4-hour time frame. The trend line has been holding since late January, so you can bet your momma’s cat that the other traders are also watching this. Stochastic is also in the overbought region, so you might want to line up your short trades if you’re trading this one. Remember to keep your stops loose though, ’cause I heard from Forex Gump that today’s a big day for the Greenback. Good luck!

GBP/AUD: 4-hour

GBP/AUD: 4-hour Forex Chart

GBP/AUD: 4-hour Forex Chart

GBP/AUD is hanging out at the 1.9400 area, which lines up with a 50% Fibonacci retracement and a previous area of interest for the pair. On the other hand, the 100 SMA has just crossed above the 200 SMA on the 4-hour chart. Are we looking at a retracement or a start of a new trend? A break above the current consolidation could lead to a move to 2.0000 while a bounce from the Fib levels could drag GBP/AUD back to its previous lows. In any case, make sure you have your strategies inked on your trading plans in case we see a pick up in volatility.

AUD/NZD: 4-hour

AUD/NZD: 4-hour Forex Chart

AUD/NZD: 4-hour Forex Chart

Here’s another dilemma for ya! AUD/NZD is forming what looks like a bearish pennant around on the 4-hour time frame. What makes this setup interesting is that the 1.0850 level has served as an area of interest back in mid-February and support in early March. Will the bears succeed in dragging the Aussie to the 1.0600 area or will the bulls defend the area of interest and push it back up to 1.1000? Watch this one closely, fellas!

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.