Intraday Forex Charts Update – May 4, 2016

CHF/JPY: 1-Hour

CHF/JPY: 1-hour Forex Chart

CHF/JPY: 1-hour Forex Chart

CHF/JPY finally broke past support at the 112.30 handle, which is a price area with very significant market interest, especially on the higher time frames. However, the pair then began consolidating shortly after that, before pulling back to the broken support at 112.30, which also happens to line up with the 38.2% Fibonacci retracement level. Price was promptly rejected when it reached the 112.30 handle and is on its way back down, so this could be a textbook break-and-retest play and the pair could potentially move lower still. The only worrying thing is that stochastic is already indicating oversold conditions, which may attract enough buyers to try and push the pair back up.

EUR/AUD: 1-Hour

EUR/AUD: 1-hour Forex Chart

EUR/AUD: 1-hour Forex Chart

After a spurt of bullish momentum, price began trading sideways when it found resistance at the 1.5390 handle. forming what appears to be a possible bullish flag pattern in the process. If the bullish flag is validated with an upside breakout, then the bullish move may have enough steam for a 430-pip move, based on the height of the forex chart pattern. Stochastic is indicating overbought conditions, though, so there’s a chance that price may respect resistance and start moving down, which would invalidate the chart pattern. Anyhow, just make sure to practice proper risk management should you find a trade based on this or any of the other charts, okay?

USD/CHF: 1-Hour

USD/CHF: 1-hour Forex Chart

USD/CHF: 1-hour Forex Chart

Price got violently rejected when it reached the 0.9450 minor psychological level and began pulling back. Using our Fibonacci tool, we can see that the price is currently just below the 38.2% retracement level, which also happens to sit right smack on the the price area with significant market interest at 0.9580. The pair may potentially start moving back down again since stochastic is already pointing down and moving away from overbought territory, but the way price is milling about just below the 38.2% retracement level makes me suspect that the bulls are getting ready for a push higher, with 0.9660 being the most likely area for resistance to form since it’s a very significant price area, even on the higher time frames, and lines up with the 61.8% retracement level to boot.

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.