Intraday Forex Charts Update – May 5, 2016

CAD/CHF: 1-Hour

CAD/CHF 1-hour Forex Chart

CAD/CHF 1-hour Forex Chart

CAD/CHF is surging higher after getting violently rejected by support at 0.7420. Will the pair find resistance soon? Well, if we apply our Fibonacci tool, we can see that price is fast approaching the 38.2% Fibonacci retracement level, which is just below the 0.7550 minor psychological level, which is a price area with market interest. Also, stochastic is already signalling overbought conditions while the 100 SMA may act as dynamic resistance soon. Anyhow, just make sure to practice proper risk management should you find a trade based on this or any of the other charts, okay?

EUR/CHF: 1-Hour

EUR/CHF 1-hour Forex Chart

EUR/CHF 1-hour Forex Chart

The trading range or rectangle on EUR/CHF’s 1-hour time frame that we identified back on Tuesday is still intact. In fact, support at 1.0970 held and the pair began moving back up, so congratulate yourselves on your easy 40-pip win if you were able to find a trade back then. Anyhow, we’re looking at the rectangle again, and it seems like the pair has finally broken out to the upside. However, there’s a chance that the pair may move back down again since stochastic is about to reach overbought territory. Further moves to the upside seem more likely, though, since stochastic is pointing back up again without reaching oversold territory, which implies strong buying interest.

AUD/CHF: 1-Hour

AUD/CHF 1-hour Forex Chart

AUD/CHF 1-hour Forex Chart

AUD/CHF smashed past support at the 0.7230 handle, which is a price area with very significant market interest, even on the higher time frames. However, the pair found fresh buyers at the 0.7130 handle and a mini double formed before the pair began pulling back up. Now, the pair is back at the broken support area at 0.7230. Using our Fibonacci tool, we can see that the 0.7230 handle lines up rather nicely with the 38.2% retracement level. Looking at our technical indicators, the 100 SMA seems to be acting as dynamic resistance while stochastic is already indicating overbought conditions.

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.