Daily Chart Art – July 12, 2016

AUD/JPY: 4-hour

AUD/JPY: 4-hour Forex Chart

AUD/JPY: 4-hour Forex Chart

First up is a lil’ something for the trend warriors. AUD/JPY is testing the 78.00 major psychological area, which lines up with a falling channel resistance on the 4-hour time frame. What makes this setup more interesting is that the channel resistance also lines up with the 200 SMA. Not only that, but stochastic is also flashing an overbought signal. Think the Aussie is in for more losses? A short trade at current levels could get you a good reward-to-risk ratio especially if you aim for the previous lows. Just make sure you make allowances for yen-related volatility!

EUR/CAD: 4-hour

EUR/CAD 4-hour Forex Chart

EUR/CAD 4-hour Forex Chart

Breakout alert! Unlike in AUD/JPY’s setup above, EUR/CAD has actually broken above the falling channel resistance AND the 200 SMA on the 4-hour time frame. Are we seeing a breakout here? Stochastic is currently in the overbought region and the pair is not showing a strong bullish momentum so the bears might be interested in nibbling. A break above the previous highs could inspire a move all the way to the 1.4650 area while a bounce back into the falling channel could take the pair to its 1.4300 support. Watch this one closely!

EUR/GBP: Daily

EUR/GBP Daily Forex Chart

EUR/GBP Daily Forex Chart

Last one up for this batch of charts is a simple resistance trade on EUR/GBP. The pair has just been rejected at the .8600 psychological level, an area that had served as resistance back in 2013. What’s more, stochastic has also reached the overbought territory. You could start building short positions around the area if you’re one of them euro bears. Of course, you could also put up Fib levels and wait for chances to buy in if you think that the pound isn’t done falling against the euro just yet.

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.