Intraday Forex Charts Update – August 31, 2015

AUD/CHF: 1-Hour

AUD/CHF 1-hour Forex Chart

AUD/CHF 1-hour Forex Chart

Looks like last Friday’s neckline bounce for the confirmed double bottom played out. Unfortunately, the bounce was short-lived since AUD/CHF kept running into sellers. Fortunately, it looks like a bullish pennant has formed on AUD/CHF’s 1-hour forex chart. If the pennant is validated, then the pair could move higher for around 300 pips since that is roughly the height of the pennant and its pole. Looking at our technical indicators, the moving averages are moving closer together for a potential cross-over into uptrend mode, but the 200 SMA seems to be acting as dynamic resistance, which is bad. Stochastic, at least, is pointing up and moving higher towards the overbought region, so forex traders bullish on the pair may still be in control.

NZD/CHF: 1-Hour

NZD/CHF 1-hour Forex Chart

NZD/CHF 1-hour Forex Chart

After falling rather hard, NZD/CHF found enough buyers to send it ever higher, forming a rather neat-looking ascending channel in the process. As y’all know, the conservative way to play an ascending channel is to look for support near the bottom of the channel. And lucky us since that’s where price is currently at. Stochastic is still in downtrend mode, though, and the long-term trend is still down, so there’s also a chance that a downside channel breakout will occur.

CAD/CHF: 1-Hour

CAD/CHF 1-hour Forex Chart

CAD/CHF 1-hour Forex Chart

Our retracement setup last Thursday didn’t work out because CAD/CHF just kept going higher, but that’s okay since a bullish pennant has formed on the pair’s 1-hour forex chart. This one is even more bullish than the one we identified for AUD/CHF since price has been closing above both the 100 SMA and 200 SMA, with the 200 SMA even acting as dynamic support. In addition, the moving averages are coming closer together for a possible cross-over into uptrend mode. Stochastic is in overbought territory, though, so perhaps forex traders who are bullish on the pair may be exhausted already. In any case, if this forex chart pattern does break, we may see a 300-pip move since that is roughly the volatility of the pattern. And make sure to practice proper risk management should you find a trade based on this or any of the other 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