Daily Chart Art – Nov. 2, 2016

EUR/USD: 4-hour

EUR/USD: 4-hour Forex ChartEUR/USD: 4-hour Forex Chart

EUR/USD: 4-hour Forex Chart

EUR/USD is sitting around the 1.1050 minor psychological handle, which is right smack at a mid-channel resistance on the chart. What makes this setup more interesting is that the level lines also lines up with a 50% Fib retracement and is just below the 200 SMA on the 4-hour time frame. A short at current levels is a pretty good idea if you want to get in on the pair’s downtrend. But if you think that the euro bulls could still do some damage, then you could also wait for a retest of the channel’s resistance before placing any short trades.

EUR/CHF: Daily

EUR/CHF: Daily Forex Chart

EUR/CHF: Daily Forex Chart

Breakout alert! EUR/CHF has just broken below the 1.0800 major psychological handle, a level that hasn’t been successfully broken since August last year. Are we looking at further losses for the euro? Or is this just a fakeout? Stochastic is currently on the bulls’ side with an almost overbought signal, but you’ll never know when the bears start to pile up their orders and put some muscle behind the downward momentum! Keep close tabs on this, will ya?

EUR/AUD: Daily

EUR/AUD: Daily Forex Chart

EUR/AUD: Daily Forex Chart

Last one up for this batch of charts is a possible break-and-retest play on EUR/AUD’s daily time frame. The pair broke below the 1.4500 support to test the 1.4100 psychological area, but it looks like the bulls have hustled enough to push it back up to the previous support. The 38.2% Fib levels is making it attractive for the bears to attack even though stochastic hasn’t quite reached the overbought territory. Shorting at current levels could give you a decent enough reward-to-risk ratio especially if you aim for the previous lows. Of course, you could also wait for a couple of bearish candlesticks and a bit of momentum if you think that the euro bulls could still push the pair higher before they let the bears take over.

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.