Intraday Chart Art Forex Update – May 18, 2015

EUR/JPY: 15 Minute

EUR/JPY 15 Min Forex Chart

EUR/JPY 15 Min Forex Chart

EUR/JPY has been trending beautifully on its 15-minute forex chart. It’s so beautiful that it makes me want to shed tears of manliness. Better still is that price may form a double bottom area pattern.

As can be seen on the chart, price broke through support at the 136.20 handle. It then went up before finding resistance close to the 137.00 major psychological level. Price already tested the 136.20 handle before but found support. Now, price is testing it again. If support does form, and price goes up, then we would have a confirmed double bottom. Of course, if it does break, then we could see intraday momentum players jump in short.

For directional bias confirmation, stochastic is in potentially oversold territory while the 100 SMA and 200 SMA are in uptrend mode. It is also worth noting that the 200 SMA is acting as dynamic support, providing this double bottom setup with some confluence.

AUD/USD: 1-hour

AUD/USD 1 Hour Forex Chart

AUD/USD 1 Hour Forex Chart

This is just a simple trend line bounce setup for AUD/USD on the 1-hour chart. Price is currently moving downwards towards a well-respected trend line. There is a good chance that support will form there because (1) the 100 SMA and 200 SMA are in uptrend mode, (2) the 200 SMA is acting as dynamic support, (3) stochastic is currently indicating potentially oversold conditions, (4) using a Fibonacci tool shows that price is currently at the 61.8% retracement level, (5) it is close the 0.8000major psychological level, and 6) this is a well-tested trend line.

Of course, even though there are a lot of technical arguments for support, anything can happen in the forex market, so make sure to practice proper risk management should you find a trade opportunity based on this chart.

NZD/CHF: 4-hour

NZD/CHF 4 Hour Forex Chart

NZD/CHF 4 Hour Forex Chart

On its 4-hour forex chart, NZD/CHF has consolidated into a descending triangle. Generally, descending triangles have a downside bias, and the 100 SMA and 200 SMA seem to support this bias because they are in downtrend mode with the 100 SMA below the 200 SMA.

But as with all triangles, there’s a good chance that it could break to the upside as well, so it would be prudent to prepare for an upside break as well. Stochastic seems to favor an upside move because it’s currently pointing to potentially oversold conditions.

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.