Intraday Forex Charts Update – Oct. 19, 2015

AUD/CHF: 1-Hour

AUD/CHF 1-hour Forex Chart

AUD/CHF 1-hour Forex Chart

AUD/CHF has been respecting this ascending channel since late August. And as y’all can see, price is currently hesitating at the mid-channel area. It even looks like price has formed a mini double bottom reversal pattern as well. Still, our technical indicators seem to more favorable to a downside move since the moving averages have just crossed-over into a downtrend and stochastic is currently pointing down and moving away from the overbought area, which could mean that forex traders who are bearish on the pair may already be in control.

AUD/USD: 1-Hour

AUD/USD 1-hour Forex Chart

AUD/USD 1-hour Forex Chart

Looks like the potential double top pattern that we identified on AUD/USD’s 1-hour forex chart last Friday didn’t have a lot of potential after all. No worries, though, since a symmetrical-ish triangle has formed instead. As a symmetrical-ish triangle, we don’t really have a directional bias, but given that price was unable to complete the double top pattern and also given the fact that the overall trend is still up, it seems like the path of least resistance is to the upside. However, stochastic is currently pointing downwards and the moving averages are coming closer together for a potential cross-over into downtrend mode. In any case, the forex chart pattern has a volatility of around 190 pips, so the resulting rally or sell-off after a potential breakout could last for the same amount.

AUD/JPY: 1-Hour

AUD/JPY 1-hour Forex Chart

AUD/JPY 1-hour Forex Chart

Price seems to be bouncing up and down inside a rough trading range or rectangle with resistance around the 87.20 handle and support near the 86.30 handle. Presently, price has moved past the midway area after bouncing off the top of the rectangle. Be careful if you’re looking to buy at the support area, though, since we can see that stochastic is still some distance away from the oversold area. Also, the moving averages have recently crossed-over into downtrend mode, with the 200 SMA acting as dynamic resistance, so even more sellers may be attracted to join-in for a possible downside breakout. Anyhow, just make sure to practice proper risk management should you find a trade based on this or any of the other charts, okay?

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