Intraday Forex Charts Update – Jan. 22, 2016

AUD/USD: 1-Hour

AUD/USD 1-Hour Forex Chart

AUD/USD 1-Hour Forex Chart

AUD/USD tried to break past the support area around the 0.6840 handle, but got repulsed and is now currently testing the resistance area at the 0.7030 handle. If the resistance area hold and price makes its way back down, then we’ll get a validated 190-pip trading range or rectangle to play with. Moving on, stochastic is pointing down and moving away from the oversold area, which may mean that forex traders who are bearish on the pair may be jumping in already. The moving averages are also still in downtrend mode, but the 100 SMA is sloping upwards for a potential cross-over, which is worrying. It’s also worrying that price has been closing above the two moving averages since that could imply strong bullish interest.

AUD/JPY: 1-Hour

AUD/JPY 1-Hour Forex Chart

AUD/JPY 1-Hour Forex Chart

Like AUD/USD, AUD/JPY found support around the 79.60 handle before climbing back up to the price area of very significant market interest around the 83.20 handle. If the aforementioned price area holds as a resistance area and repels price, then that potential 360-pip rectangle that you see there will be validated. Looking at our technical indicators, stochastic is indicating overbought conditions and is presently pointing down, so seller may start coming in soon. The only thing we should be worried about is that the moving averages are about to cross-over into an uptrend. Also, (and similar to the AUD/USD setup) price has been closing above the moving averages, which implies bullish strength.

AUD/CHF: 1-Hour

AUD/CHF 1-Hour Forex Chart

AUD/CHF 1-Hour Forex Chart

This pair is arguably the weakest among the three since price made three attempts to push past the support area around the 0.6850 minor psychological level. All three attempts failed, which implies very strong buyer interest around that area. Price has also been closing above the resistance area around the 0.7100 major psychological level, which also implies strong buyer interest, not to mention the fact that price has been closing above the moving averages. Anyhow, if the pair begins going back down again, then we’ll have a 250-pip trading range or rectangle. As usual, 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