Intraday Forex Charts Update – Apr. 14, 2016

GBP/CHF: 1-Hour

GBP/CHF: 1-hour Forex Chart

GBP/CHF: 1-hour Forex Chart

GBP/CHF smashed support at the 1.3740 handle and continued moving lower until it encountered buyers at the 1.3450 minor psychological level. The buyers counter attacked and pushed the pair higher back to the broken resistance at 1.3740. Will the sellers be able to hold the line? Well, aside from being a price area with significant market interest, the 1.3740 handle also lines up rather nicely with the 61.8% Fibonacci retracement level, so there’s a chance that the broken support will act as resistance. However, do note that the moving averages have just crossed-over into uptrend mode while stochastic is indicating oversold conditions, so there’s also a chance that the bulls are preparing to assault the 1.3740 handle.

USD/CHF: 1-Hour

USD/CHF: 1-hour Forex Chart

USD/CHF: 1-hour Forex Chart

USD/CHF finally managed to breach the support area around 0.9660, but bulls immediately started jumping in. The bears were relentless, though, and they kept pushing the pair ever lower until the bears finally ran out of steam when it reached the 0.9510 handle. Now, the pair has pulled back to the 0.9660 handle, giving us a classic break-and-retest setup to play with. Applying our Fibonacci tool, we can see that the the 0.9660 handle sits between the 61.8% and 50% retracement levels, so there’s a good chance that the 0.9660 handle may hold as resistance. The signals from our technical indicators are kinda worrying, though, since stochastic has just reached oversold territory while the moving averages are just about to cross-over into an uptrend.

CHF/JPY: 1-Hour

CHF/JPY: 1-hour Forex Chart

CHF/JPY: 1-hour Forex Chart

As y’all can see, the pair moved with great bearish momentum until it reached the well-respected support area around the 112.80 level. Forex traders who are bearish on the pair keep pushing the pair lower, however, which is why a descending triangle has now formed, although it does kinda look like a bearish pennant when switching to the higher time frames. They’re both bearish forex chart patterns, though, so our directional bias is still to the downside. If this is indeed a descending triangle, then a downside breakout may last for around 130 pips, but if this is a bearish pennant, then the pair may potentially move for a whopping 400 pips. 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?

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.