Intraday Forex Charts Update – Feb. 24, 2016

AUD/CHF: 1-Hour

AUD/CHF 1-hour Forex Chart

AUD/CHF 1-hour Forex Chart

First up is that there slightly descending channel on AUD/CHF’s 1-hour chart. I bet ya were expecting me to tell ya that one of the most conservative ways to play a descending channel is to look for selling opportunities near the top of the channel, which is where price is currently at. And you’re right because I just did. I am a bit worried though because the bullish momentum for the current swing up seems to be steady. Also, there’s a chance that price may respect that there rising trend line and continue going higher, not to mention the facts that the moving averages have crossed-over into uptrend mode and that stochastic is indicating oversold conditions. Anyhow, conservative forex traders may wanna wait until price closes below the 200 SMA before considering going short.

CHF/JPY: 1-Hour

CHF/JPY 1-hour Forex Chart

CHF/JPY 1-hour Forex Chart

Next, we’ve got that there rather tight descending channel for CHF/JPY. This time, I’m really hesitant that price will continue going lower because price has reached the price area of very significant market interest at the 112.40 handle. If you don’t believe me or don’t know how significant that price level is, just zoom out to the daily or weekly time frames. Stochastic has also just left oversold territory, which is not exactly comforting. The moving averages are indicating a very healthy downtrend, however. 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?

EUR/AUD: 1-Hour

EUR/AUD 1-hour Forex Chart

EUR/AUD 1-hour Forex Chart

I’ll end with that there rather messy-looking descending channel for EUR/AUD. As y’all can see, price has just recently bounced of the channel’s support area around the the 1.5170 handle is currently gunning for the channel’s resistance area just under the 1.5500 major psychological level, which served as a support area before. Incidentally, this setup also doubles as a break-and-retest setup. And applying our Fibonacci tool, we can see that the 61.8% retracement level aligns very nicely with the 1.5500 price level, but we can also see that the 50% retracement level is around the vicinity of the 100 SMA, so the moving average can potentially act as dynamic resistance. Conservative traders may wanna go with the 61.8% retracement level, while more aggressive traders may find the 50% retracement level attractive.

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