Intraday Forex Charts Update – Oct. 16, 2015

EUR/NZD: 1-Hour

EUR/NZD 1-hour Forex Chart

EUR/NZD 1-hour Forex Chart

Steady as she goes! EUR/NZD has been steadily moving lower inside a neat-looking descending channel on its 1-hour forex time frame. And price just recently bounced off the channel’s support area and is now making its way back up. Looking at our technical indicators, the moving averages are showing a very healthy downtrend, with the 200 SMA acting as dynamic resistance on several occasions. Stochastic is already indicating potentially overbought conditions, though, so there’s a possibility that the pullback would be running out of steam and price will be making its way back down again. Still, the most conservative way to play a descending channel is to look for resistance near the top of the channel.

AUD/USD: 1-Hour

AUD/USD 1-hour Forex Chart

AUD/USD 1-hour Forex Chart

Forex Mates! Sound the reversal alert! The pair tried to move past the resistance area around the 0.7350 major psychological level on two occasions and failed on both tries, creating a potential double top pattern in the process. Take care, though, since stochastic has already reached oversold territory, so forex traders who are bearish on the pair may be exhausted already. Also, the 200 SMA is acting as dynamic support, although the two moving averages are moving closer together for a potential cross-over into downtrend mode. In any case, the height of the forex chart pattern is around 150 pips, so the resulting sell-off (assuming the pattern is validated) could potentially last for the same amount.

NZD/CHF: 1-Hour

NZD/CHF 1-hour Forex Chart

NZD/CHF 1-hour Forex Chart

I hope you’re not sick of channels, ’cause I’ve got another one. As y’all can see, NZD/CHF has been bouncing around inside an ascending channel since late September. And while price has just barely moved past the mid-channel area after bouncing off the top of the channel, stochastic is already pointing up and moving away from the overbought region, so the bulls may be taking over already. And if we apply our Fibonacci retracement tool, we can see that price is currently hesitating at the 38.2% retracement level. In addition, the 100 SMA is currently acting as dynamic support as well. As usual, make sure to practice proper risk management should you find a trade based on this or any of the other charts, alright?

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