Intraday Forex Charts Update – Nov. 11, 2015

EUR/JPY: 1-Hour

EUR/JPY 1-Hour Forex Chart

EUR/JPY 1-Hour Forex Chart

Is this pair ready to resume moving downward? Well, it looks like euro bears are gearing up for a potential attempt to push past support at the 131.80 handle since a descending triangle has formed. The moving averages are also indicating a downtrend while stochastic is pointing down, so euro bears may still be in control. Anyhow, the forex chart chart pattern has a volatility of around 170 pips, so a resulting selloff from a downside breakout could probably move for the same amount. Triangles are prone to breaking out of the other side, however, so make the necessary preparations for an upside breakout 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?

EUR/NZD: 1-Hour

EUR/NZD 1-Hour Forex Chart

EUR/NZD 1-Hour Forex Chart

After finding support at the 1.6230 handle, EUR/NZD began to trade sideways, as attempts by forex traders bearish on the pair to push past support failed again and again. In the meantime, forex traders bullish on the pair tried to break past resistance at the 1.6500 major psychological level, but also kept failing. In the process, a 270-pip rectangle or trading range has formed. Currently, price is making its way down to test the support area, so get ready if you wanna trade within the range. But know that stochastic is already signalling oversold conditions, so the bulls may start nibbling sooner or later. And while the moving averages have already crossed-over into uptrend mode, the overall trend is still to the downside, so be careful since a downside breakout is a possibility.

EUR/AUD: 1-Hour

EUR/AUD 1-Hour Forex Chart

EUR/AUD 1-Hour Forex Chart

EUR/AUD has been respecting that there descending channel on its 1-hour forex chart since late September, and price is presently milling about near the top of the channel. Normally, I’ll say that the most conservative way to play a descending channel is to look for resistance near the top of the channel. However, the pair recently seems to have found difficulty pushing past support at the 1.5160, which also happens to be very near the top of the channel. The way I see it, there are two major scenarios here: (1) price respects the channel and keeps going down, or (2) price stages an upside breakout attempt. Stochastic is already indicating oversold conditions, so forex traders bearish on the pair may be exhausted already. Meanwhile, the moving averages are oscillating, so they’re not really helping much. And while the intermediate trend is still down, if we zoom out to the higher time frames, we can actually see that the long-term trend is still up, so the path of least resistance appears to be to the upside.

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