Intraday Forex Charts Update – Oct. 27, 2015

EUR/CHF: 1-Hour

EUR/CHF 1-Hour Forex Chart

EUR/CHF 1-Hour Forex Chart

EUR/CHF has moving ever lower inside a descending channel. As I always say, the most conservative way to play a descending channel is to look for resistance near the top of the channel. And it looks like that is where price is currently making its way to. The top of the channel is close to the 1.0900 major psychological level, so keep an eye on that price level. Looking at our technical indicators, stochastic is already indicating overbought conditions, but the moving averages are about to cross-over into uptrend mode. I wouldn’t give it too much thought, though, since the 100 SMA and 200 SMA are practically oscillating and price action shows that the overall trend is still down.

AUD/CHF: 1-Hour

AUD/CHF 1-Hour Forex Chart

AUD/CHF 1-Hour Forex Chart

Price has been respecting this ancient (from a 1-hour forex time frame perspective) ascending channel since late August. The pair is currently testing the top of the channel and resistance at the 0.7130 handle seems to be holding. Heck, price is even moving back down already. We can also see that stochastic is already pointing down and moving away from overbought territory, which could mean that forex traders who are bearish on the pair may be taking over already. As for the moving averages, they’re oscillating, so pay them no mind, but keep in mind that they may act as dynamic support when (or if) price reaches them. Also keep in mind that this setup is only meant for aggressive traders since looking for resistance in an ascending channel is a counter-trend setup and is therefore a bit more riskier than usual.

CAD/JPY: 1-Hour

CAD/JPY 1-Hour Forex Chart

CAD/JPY 1-Hour Forex Chart

This setup is also a counter-trend setup, so conservative traders should also probably sit this one out. As y’all can see, CAD/JPY has been steadily sinking lower while bouncing around inside a descending channel. Price is presently about to test the bottom of the channel, and stochastic has already reached the oversold region, so buyers may start nibbling soon enough. The moving averages also agree with the bearish price action since they are currently in downtrend mode. They’re very close together, though, which could mean that the downtrend hasn’t fully developed yet, which is why we’re looking for a pullback to the top of top of channel on this chart. As usual, just 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