Vantage FX Chart of the Day

[Vantage FX]

Good Morning Forex Peace Army!

Within each Vantage FX Daily Market Update, there is a featured section called Chart of the Day. The idea is for the chart to be a clear, actionable setup that can help you with your trading decisions for the day and we'll be keeping track of them as a journal inside this thread.

We'd love to hear your opinion on any of the charts we post, so please comment on the thread and hopefully share a chart of your own.

 

[Vantage FX]

Chart of the Day:
A pure Forex Technical setup today on NZD/USD, hitting 4 hour channel resistance.

NZD/USD 4 Hourly:

Click on chart to see a larger view.

As you can see, price rejected off channel resistance almost to the pip, giving the trend line a third confirmation touch. A chart of beauty for the technical analysis purists out there!

Read more about trading NZD/USD on the Vantage FX News Centre.

 

[Vantage FX]

Chart of the Day:
Back into the world of Indices trading today, with the look at the CHINA50 index chart.

CHINA50 4 Hourly:

Click on chart to see a larger view.

The CHINA50 is not a market that gets a lot of attention but as we’ve said before, it’s a market that obeys technical levels nicely.

With Chinese stock indices in a well publicised downtrend, it’s interesting to note the technical structure of how price has stepped down between levels. As you can see on today’s chart, each time the CHINA50 has broken a level of support, it has flagged along a trend line and failed at the re-test of previous support now acting as resistance.

Price has again formed a flag pattern after breaking the most recent level of support and is currently re-testing previous support as possible resistance. Are you looking to position yourself for the breakout?

Read more about trading Chinese Markets on the Vantage FX News Centre.

 

[Vantage FX]

Chart of the Day:
Cheating the ‘Chart of the Day’ name a little today by showing two AUD/USD charts, but the longer time frame is needed for context.

AUD/USD Weekly:

Click on chart to see a larger view.

Using the weekly chart as context for the trend line price is flirting with in the big picture, what I really wanted to highlight is in the daily chart to follow.

AUD/USD Daily:

Click on chart to see a larger view.

After having broken the major weekly trend line, price came back to re-test not only the trend line, but also the short term broken support level. It’s here we get these two beautiful long wicks rejecting price off the level.

Find more AUD/USD technical analysis on the Vantage FX News Centre.

 

[Vantage FX]

Chart of the Day:
With the fallout from yesterday’s Volkswagen emissions scandal starting to settle, the German DAX took quite a hit overnight during the European session.

DAX30 Weekly:

Click on chart to see a larger view.

While still in a major bullish trend, price has pulled all the way back to weekly trend line support.

DAX30 Daily:

Click on chart to see a larger view.

The daily has seen price kick down from where we were re-testing the short term flag support as resistance a month ago, providing a nice continuation short. Now with price back at both swing lows and major weekly trend line support, buyers surely wont be far away.

Read more Indices trading analysis on the Vantage FX News Centre.

 

[Vantage FX]

Chart of the Day:
When posting a USDX chart, I always like to try to then post a chart of one of the Forex majors for comparison. Analysis on the USDX chart is such a powerful tool when used in conjunction with any of the majors.

Even if not trading the USDX directly, I definitely recommend keeping one open on an MT4 Demo for reference.

EUR/USD Daily:

Click on chart to see a larger view.

Price has bounced off our EUR/USD level of interest from earlier in the week. In conjunction with the USDX chart above, I do like the idea of playing for a squeeze before we continue down.

With the bottom of the short term channel creeping closer with each day of sideways trading, the level is available to manage risk around.

Do you see opportunity in EUR/USD?

Read the full EUR/USD technical analysis on the Vantage FX News Centre.

 

[Vantage FX]

Chart of the Day:
Today’s chart of the day is a follow on from last week’s NZD/USD 4 hour channel setup.

NZD/USD 4 Hour:

Click on chart to see a larger view.

Friday’s daily candle once again touched the Kiwi channel (yes, again to the pip) we have been following, giving the level its 4th touch. But with Monday’s gap down, price has still rejected the level… for now.

With each touch and subsequent failure to make a lower low, the sellers are absorbed. The breakout is near.

Do you see opportunity in the Kiwi chart?

Read more NZD/USD technical analysis on the Vantage FX News Centre.

 

[Vantage FX]

Chart of the Day:
We’ve dug up an old Technical Analysis blog post from August where we went through some Gold shorting scenarios. Scroll down to the final chart on that post and compare it to where price now sits.

XAU/USD Daily:

Click on chart to see a larger view.

As you can see, price has come back up to re-test the horizontal SR zone that we had marked as a point of interest in the previous post. With some short term trend line confluence also playing a role, price hasn’t been able to make a new high.

This area offers a clear level to manage your risk around for a trend continuation play.

Find more Commodities trading analysis on the Vantage FX News Centre.

 

[Vantage FX]

Chart of the Day:
For a few weeks now, social media has been abuzz with the consolidation triangle that USD/JPY has been printing.

USD/JPY 4 Hourly:

Click on chart to see a larger view.

We have been watching this USD/JPY triangle for a few weeks ourselves and I must say that the price action has been largely disappointing from a trader’s viewpoint.

Price never really broke down after re-testing the broken trend line as resistance, instead just petering out into more sideways chop. The upper trend line is still being respected, but this is the sort of price action prone to fake outs.

Find more USD technical analysis in the Vantage FX News Centre.

 

[Vantage FX]

Chart of the Day:
Today’s chart of the day takes a look at last night’s drop in USD/CAD and a possible trend line re-activation.

“CAD GDP m/m (0.3% v 0.2% expected, with previous revised down to 0.4% from 0.5%)”

USD/CAD 4 Hourly:

Click on chart to see a larger view.

If you’re a reader of the Vantage FX News Centre blog, then you’d know that I’ve talked about these trend line re-activation setups in the past.

Once a trend line has been broken like this, a huge proportion of these breaks are not sustained. This means that price will actually tuck back into the original channel again and ‘re-activate’ the trend line just like this. Don’t rush to clear your charts of long term trend lines just because they’ve been broken.

Find more commodity currencies technical analysis on the Vantage FX News Centre.