Daily Chart Art – July 4, 2016

AUD/USD: 1-hour

AUD/USD: 1-Hour Forex Chart

AUD/USD: 1-Hour Forex Chart

First up is a simple range play for AUD/USD. The pair has just been rejected at the .7500 major psychological handle, which has held as resistance since early June. Stochastic isn’t cooperating though, so you might want to be more vigilant if you’re shorting this one. Shorting at the current levels could get you a good reward-to-risk ratio especially if you aim for the range support. Just make sure you practice good risk management, aight?

EUR/GBP: 1-hour

EUR/GBP: 1-hour Forex Chart

EUR/GBP: 1-hour Forex Chart

Breakout alert! EUR/GBP has just broken above an ascending triangle on the 1-hour chart, folks. What makes this setup more interesting is that the pair is currently testing the broken resistance. Are we looking at a resistance-turned-support situation? Buying at the former resistance area could make for a good trade especially if you think that the pair has indeed broken to the upside. On the other hand, you can also wait for the pair to go back to its triangle and show bearish momentum if you think that the euro could still decline against the pound this week.

AUD/JPY: 4-hour

AUD/JPY: 4-hour Forex Chart

AUD/JPY: 4-hour Forex Chart

AUD/JPY is lollygagging just above the 76.50 area, which is also near the 50% Fib retracement, 100 and 200 SMAs, and the top of a falling channel on the 4-hour chart. Think the Aussie is in for more pain against the yen? The pair hasn’t quite reached the channel resistance so it could still pop up before seeing a bearish momentum. If you think that the Aussie has no more room to rise though, then you could also short at current levels and place wider stop losses. In any case, make sure you make allowances for yen-related volatility!

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.