Intraday Forex Charts Update – May 6, 2016

NZD/CAD: 1-Hour

NZD/CAD 1-hour Forex Chart

NZD/CAD 1-hour Forex Chart

As I always say, one of the more conservative ways to play a descending channel is to look for opportunities to go short near the channel’s resistance. Y’all better get ready then since the pair is presently making its way there. However, do note that stochastic is already pointing up while moving away from oversold territory. In addition, the pair seems to be bouncing from the price area with significant market interest at the 0.8790 handle. Moreover, the moving averages are already in uptrend mode, with the 100 SMA acting as dynamic support to boot. All these point to a possible upside channel breakout, so make sure to prepare for such a scenario as well.

NZD/USD: 1-Hour

NZD/USD 1-hour Forex Chart

NZD/USD 1-hour Forex Chart

NZD/USD seems to be respecting resistance at the 0.7050 minor psychological level and support at the 0.6830 handle for the past several days, giving us a nice, 220-pip trading range or rectangle pattern to play with. Currently, trading within the range seems like a viable option since price is testing support at 0.6830 while stochastic is already indicating oversold conditions. There’s always a chance for a downside rectangle breakout, though, so just make sure to practice proper risk management should you find a trade based on this or any of the other charts, okay?

EUR/NZD: 1-Hour

EUR/NZD 1-hour Forex Chart

EUR/NZD 1-hour Forex Chart

EUR/NZD has been steadily moving ever lower while bouncing up and down inside a slightly descending channel. And it just so happens that price is about to test the channel’s resistance area, so lucky us since we may be getting opportunities to go short soon. Looking at our technical indicators, it’s good that stochastic is already indicating overbought conditions, but it is kinda worrying that the moving averages have now crossed over into an uptrend, so do be careful.

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.