Daily Chart Art – Oct. 21, 2016

GBP/AUD: 1-hour

GBP/AUD: 1-hour Forex Chart

GBP/AUD: 1-hour Forex Chart

Trend traders huddle up! GBP/AUD is about to hit the 1.6100 major psychological handle, which is right smack at a falling trend line resistance that hasn’t been broken since early September. What makes this setup more interesting is that the potential resistance level is also near the 100 and 200 SMAs on the 1-hour chart. The cherry on top of this potentially bearish treat is an overbought stochastic signal. Think the pound is in for more losses against the Aussie? Watch this one closely, folks!

USD/JPY: 4-hour

USD/JPY: 4-hour Forex Chart

USD/JPY: 4-hour Forex Chart

Is that a range bounce I see? USD/JPY can’t get past the 104.25 mark, an area that has been serving as support and resistance for the pair from all the way back to mid-June. Shorting at a bounce from the resistance area could give you a good reward-to-risk ratio especially if you think that it will go back down to the 100.00 range support. Be ready to flip your biases though, as we could also be looking at a bullish rectangle in the making. A break above the major resistance area could push the pair to its July highs around 107.00

GBP/CAD: 4-hour

GBP/CAD: 4-bour Forex Chart

GBP/CAD: 4-bour Forex Chart

I spy with my cool, blue eyes a potential retracement in the making! GBP/AUD just bounced from the 1.6000 major psychological handle, and it looks like it’s heading fast for the 1.6700 area of interest. The area happens to line up with a previous support as well as the 61.8% Fib and 200 SMA on the 4-hour time frame. The pair is still quite far from the retracement level, so you still have time to whip up a trading plan if you want to trade this setup.

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.