Intraday Forex Charts Update – August 11, 2015

USD/JPY: 1-Hour

USD/JPY 1-hour Forex Chart

USD/JPY 1-hour Forex Chart

USD/JPY has been moving inside an ascending channel on its 1-hour forex chart, but it currently seems to be having difficulty in pushing past resistance at the 125.00 major psychological level. The way I see it, there are two major scenarios here: (1) price respects the channel and keeps moving higher, or (2) forex traders bearish on the pair overcome the bulls, setting the stage for a downside channel breakout. Looking at our technical indicators, the moving averages support the channel continuation scenario since they are still in uptrend mode while stochastic is already indicating potentially overbought conditions, which supports a potential downside channel breakout.

CHF/JPY: 1-Hour

CHF/JPY 1-hour Forex Chart

CHF/JPY 1-hour Forex Chart

As y’all probably know, the conservative way to play a descending channel is to look for resistance near the top of the forex chart pattern, and lucky us since price is currently near the top of the channel. And if we put a horizontal line, we can also see that price is currently milling about around the 127.30 handle, a price area that has seen some market interest in the past. Stochastic just moved down from overbought territory, but it’s already pointing up again, so it’s possible that forex traders bullish on the pair may not have given up just yet. The moving averages, on the other hand, are indicating that the downtrend is still intact.

GBP/CHF: 1-Hour

GBP/CHF 1-hour Forex Chart

GBP/CHF 1-hour Forex Chart

Yep, we’ve got us yet another channel. As y’all can see, price has been moving neatly inside an ascending channel, but it seems to have found some resistance mid-channel and is now moving back down. Lucky! Perhaps it would move close enough to the bottom of the channel to allow us to hop on. That’s certainly is possible since the stochastic oscillator has just recently moved away from the overbought region, so bears may in control for now. In any case, 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.AUD/CAD 1-hour Forex Chart