Daily Chart Art – August 31, 2016

AUD/USD: 1-hour

AUD/USD 1-hour Forex Chart

AUD/USD 1-hour Forex Chart

First up is a countertrend trade opportunity on AUD/USD. The pair just bounced from the .7500 major psychological handle, which lines up with a falling channel support on the 1-hour time frame. Not only that, but stochastic is also about to pop up from the oversold territory. Be careful in buying this one though Countertrend trading is dangerous for those who have limited experience with the strategy!

EUR/JPY: 4-hour

EUR/JPY: 4-hour Forex Chart

EUR/JPY: 4-hour Forex Chart

I spy with my cool, bedroom eyes a possible breakout in the making! EUR/JPY is lollygagging inside a symmetrical triangle on the 4-hour chart and it looks like it’s about to reach the end of the pattern. Which direction will the pair break into? Prepare your breakout strategies and watch this one closely for any signs of breakout some time this week!

USD/CHF: Daily

USD/CHF: Daily Forex Chart

USD/CHF: Daily Forex Chart

Last one up for this batch of charts is a simple resistance play on USD/CHF. The pair is almost at the .9950 minor psychological level, which is right smack at a resistance that hasn’t been broken since February this year. In addition, stochastic is also about to reach the overbought mark. Shorting at .9950 will give you a good reward-to-risk ratio especially if you believe that USD/CHF will go back to the .9550 area. Of course, you could also wait for a break above said resistance area if you’re one of them dollar bulls.

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.