Intraday Forex Charts Update – May 3, 2016

EUR/JPY: 1-Hour

EUR/JPY 1-hour Forex Chart

EUR/JPY 1-hour Forex Chart

EUR/JPY moved with great bearish momentum until it found support at the 121.80 handle and then began consolidating into what looks like a symmetrical triangle, although it also looks kinda like a bearish pennant on the higher time frames. If this is a symmetrical triangle, then the pair could break out in either direction and move for around 150 pips. But if this is a bearish pennant, then our main directional bias is to the downside and the pair may have enough momentum to move for a whopping 460 pips, based on the pennant and its mast or pole.

EUR/CHF: 1-Hour

EUR/CHF 1-hour Forex Chart

EUR/CHF 1-hour Forex Chart

EUR/CHF has been trading sideways while respecting resistance at 1.1010 and support at 1.0970, giving us a tight 40-pip trading range or rectangle pattern to play with. Price is currently testing the rectangle’s support area at 1.0970, so if you’re looking to trade within the range, then now would be a good time to look for opportunities to go long. Looking at our technical indicators, stochastic is about to reach oversold territory, which is encouraging, but the moving averages are about to cross-over into downtrend mode, so keep that in mind.

GBP/AUD: 1-Hour

GBP/AUD 1-hour Forex Chart

GBP/AUD 1-hour Forex Chart

GBP/AUD spiked to the topside a few hours ago and then promptly began consolidating when it reached the 1.9440 handle, forming what seems to be a bullish flag in the process. If the bullish flag is validated and an upside breakout occurs, then the pair could move higher for about 400 pips, based on the height of the forex chart pattern. Do be careful, however, since stochastic is already indicating overbought conditions, which may attract enough sellers to push price lower and invalidate the pattern. 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.