Intraday Forex Charts Update – Nov. 18, 2015

EUR/USD: 1-Hour

EUR/USD 1-Hour Forex Chart

EUR/USD 1-Hour Forex Chart

As I always say, the most conservative way to play a descending channel is to look for resistance and shorting opportunities near the top of the channel. And lucky us since that’s where price is currently at. Even better, the moving averages are clearly in downtrend mode and stochastic is pointing down and moving away from overbought territory, so forex traders who are bearish on the pair may be in control already. Not only that, it also looks like price action and stochastic are presently diverging. And based on our School’s Divergence Cheat Sheet, it looks like we’ve got a textbook hidden bearish divergence right there, which could mean that the downtrend will continue soon.

EUR/NZD: 1-Hour

EUR/NZD 1-Hour Forex Chart

EUR/NZD 1-Hour Forex Chart

It looks like EUR/NZD has been trading sideways inside a 220-pip trading range or rectangle, with resistance at the 1.6550 minor psychological level and support at the 1.6330 handle. The moving averages are oscillating, so they only help to confirm that EUR/NZD is currently ranging, but stochastic is already indicating overbought conditions. And since price is already approaching the rectangle’s resistance area, then that could mean that we may get an opportunity to trade within the range soon enough.

EUR/JPY: 1-Hour

EUR/JPY 1-Hour Forex Chart

EUR/JPY 1-Hour Forex Chart

Like EUR/USD, EUR/JPY has also been moving lower while bouncing around inside a descending channel. Also like EUR/USD, price is currently near the top of the forex chart pattern while the moving averages are in downtrend mode and stochastic is already indicating oversold conditions. Unlike EUR/USD, however, price seems to have difficulty parting ways with the price area of significant market interest at around the 131.70 handle. This therefore gives us two major scenarios: (1) price respects the channel and uses the price area of interest as a launching pad for further moves to the downside, or (2) buyers attempt an upside channel breakout. 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, 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