Intraday Forex Charts Update – July 21, 2015

USD/CHF: 1-Hour

USD/CHF 1-hour Forex Chart

USD/CHF 1-hour Forex Chart

After that strong bounce off the ascending channel’s ceiling, could USD/CHF be headed for the bottom? Our indicators seem to hint that such a scenario is unlikely at the moment since stochastic is already indicating oversold conditions and is even pointing up, which means that forex traders who are bearish on the pair may already be exhausted. The moving averages are also moving further apart, which means that the uptrend is still healthy. Moreover, the 100 SMA seems to be acting dynamic resistance. However, if sellers refuse to give up, the pair could keep moving down. It’s first stop would probably be at the 0.9500 major psychological level, a price zone near the bottom of the channel and a price area of significant market interest in the past, as highlighted by the rectangle.

EUR/NZD: 1-Hour

EUR/NZD 1-hour Forex Chart

EUR/NZD 1-hour Forex Chart

Except for an earlier false breakout to the downside, price has been respecting this ascending channel on EUR/NZD’s 1-hour forex time frame. Price recently tried to violate the channel again, but was forced back inside. If we apply a horizontal line, we can see that price was repelled at the 1.6400 major psychological level, a price area which has seen very significant market interest in the recent past, as highlighted by the rectangle. If this price area holds as support, then price may very well be on its way back up. Looking at our indicators, stochastic is still pointing up, so bulls may still be in control. The moving averages are in uptrend mode, but they’ve been oscillating, so the uptrend isn’t all that strong.

GBP/USD: 1-Hour

GBP/USD 1-hour Forex Chart

GBP/USD 1-hour Forex Chart

GBP/USD has been moving in a tight descending channel for the past few days. But volatility seems to have dried up as the pair reached the former resistance area at the 1.5550 minor psychological level. And while the pair is grinding lower, the moving averages are still in uptrend mode, with the 200 SMA acting as dynamic support. Stochastic has also been stuck near the oversold region for a while now. And given these readings, there is a possibility that forex traders bullish on the pair may be gearing up for an upside breakout of the channel.

As usual, make sure to practice proper risk management should you find a trade based on any of these charts.

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.