Intraday Forex Charts Update – Oct. 29, 2015

EUR/CHF: 1-Hour

EUR/CHF 1-hour Forex Chart

EUR/CHF 1-hour Forex Chart

Looks like this descending channel on EUR/CHF’s 1-hour forex chart that we identified back on Tuesday is still intact. Price made its way to the top of the channel, got rejected, and then moved lower for around 60 pips since we last saw it. However, price seems to be holding at the mid-channel area around the 1.0850 minor psychological level, which also happens to be a price area of significant market interest, as highlighted by the rectangle. As such, I see two potential scenarios here: (1) price respects the channel and moves lower, or (2) an attempt at or an actual upside breakout occurs. Looking at our technical indicators, both moving averages appear to be acting as dynamic support while stochastic is about to reach the oversold region, so the bias is for an upside move. If we zoom out to a 4-hour time frame, we can also see that the overall trend is still up, so the path of least resistance seems to be to the upside. Still, it would probably better to prepare for both scenarios.

EUR/NZD: 1-Hour

EUR/NZD 1-hour Forex Chart

EUR/NZD 1-hour Forex Chart

Time for another trip down memory lane. This time, we’re looking at the descending channel on EUR/NZD’s 1-hour forex time frame that we found back on Monday. And if you found a trade based on that aggressive setup, then congratulations on your 300-pip win. If you missed out on that, then make sure to take a good look at today’s play. As y’all can see, price has been respecting a rising trend line inside the descending channel, which gives us another dual-scenario setup. The first scenario is that the channel’s resistance around the 1.6400 major psychological level holds and price moves back down while the second scenario is that price respects the rising trend line and keeps moving higher. I personally think the first scenario is the more likely one since the moving averages are clearly in downtrend mode, with both the 100 and 200 SMAs acting as dynamic resistance on multiple occasions. Also, stochastic is already pointing down, so forex traders who are bearish on the pair may be wrestling control already. Do wait for a trend line break as confirmation, though.

EUR/JPY: 1-Hour

EUR/JPY 1-hour Forex Chart

EUR/JPY 1-hour Forex Chart

EUR/JPY has been bouncing around inside a newly minted descending channel, which was validated when price bounced off the channel’s support area around the 131.60 handle a few hours ago. Currently price is making its way to the top of the channel, but it already seems to be meeting sellers along the way. And if we apply our Fibonacci tool, we can see that price seems to be hesitating at the 50% retracement level at the 132.60 handle. Also, stochastic is already indicating overbought conditions, so bears may be nibbling-in already. Still, the most conservative way to play a descending channel is to look for resistance near the top of the channel, so more conservative forex traders should probably wait for that. In any case, 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