Intraday Forex Charts Update – Feb. 16, 2016

AUD/NZD: 1-Hour

AUD/NZD 1-hour Forex Chart

AUD/NZD 1-hour Forex Chart

AUD/NZD moved with sufficient and convincing bullish momentum before hesitating when it approached the 1.0870 handle, a price area of significant market interest even on the higher time frames. In the process, it consolidated into a rather obvious bullish pennant. If the bullish pennant is validated, and price breaks through the 1.0870 handle, then the pair could go higher for about 150 pips since that is the height of the pennant and its pole or mast. The moving averages have also just recently crossed-over into uptrend mode, which is good, but stochastic is already indicating overbought conditions, which is bad since it may mean that forex traders who are bullish on the pair may be exhausted already.

AUD/CAD: 1-Hour

AUD/CAD 1-hour Forex Chart

AUD/CAD 1-hour Forex Chart

I know I keep saying it like a broken clock, but one of the most conservative ways to play a descending channel is to look for selling opportunities near the top of the channel. And that is where price is currently milling about, so y’all better start looking. Looking at our technical indicators, the moving averages are oscillating, so their signals aren’t all that reliable, but it’s a bit worrying that they just recently crossed-over into an uptrend. As for stochastic, it’s currently pointing up, which is another worrying thing since it likely means that bulls are still in control, so an upside channel breakout is a possibility.

GBP/AUD: 4-Hour

GBP/AUD 4-hour Forex Chart

GBP/AUD 4-hour Forex Chart

Can’t get enough of trend plays? Have another one! GBP/AUD has been grinding lower while trapped inside a well-respected descending channel on its 4-hour time frame since mid-August. In addition, the moving averages have been indicating a downtrend for a while now, and the 200 SMA has even been acting as dynamic resistance recently. And as y’all can see, price is currently making its way past the mid-channel area with convincing momentum, with the bottom of the channel around the 1.9700 major psychological level as the likely target. Conservative forex traders may wanna sit this one out, though, especially since stochastic is already indicating oversold conditions. 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