Daily Chart Art – August 4, 2016

EUR/USD: 1-hour

EUR/USD: 1-Hour Forex Chart

EUR/USD: 1-Hour Forex Chart

Dollar traders huddle up! EUR/USD is having trouble breaking below the 1.1150 area, which is right smack at a rising trend line that has been serving as support and resistance since late July. What makes this setup interesting is that stochastic is also chillin’ in the oversold territory. A long trade at current levels could make for a good trade if you’re one of them euro bulls. Of course, you could also wait for a break below the trend line if you think that the dollar will soon gain on the common currency.

AUD/JPY: 1-hour

AUD/JPY: 1-Hour Forex Chart

AUD/JPY: 1-Hour Forex Chart

After bouncing from the 76.50 area, AUD/JPY looks like it’s headed for the 77.75 levels. Watch the area closely, folks! Not only is it near a falling channel resistance, but it also lines up with the 38.2% Fib and SMAs on the 1-hour time frame. Think the Aussie is about to see some more losses against the yen? Read up on using Fibonacci retracements to jump in on trends if you haven’t done it yet!

AUD/NZD: 1-hour

AUD/NZD: 1-Hour Forex Chart

AUD/NZD: 1-Hour Forex Chart

Last one for this batch of charts is a nice and simple downtrend trade on AUD/NZD. The pair is currently testing the 1.0600 major psychological handle, which is right at a falling trend line resistance and 200 SMA on the 1-hour chart. What’s more, stochastic is also near the overbought territory. A short trade at current levels could give you a good reward-to-risk ratio especially if you aim for the previous lows. Meanwhile, the bulls can also wait for a break ABOVE the resistance levels for possible breakout opportunities.

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.