Intraday Forex Charts Update – May 9, 2016

EUR/USD: 1-Hour

EUR/USD 1-Hour Forex Chart

EUR/USD 1-Hour Forex Chart

We’re kicking off our intraday charts update with a rising, but super slow, trend in EUR/USD.  The pair has been grinding higher throughout 2016, and we’re seeing a potential opportunity to get into this move higher at a better price.

After pulling back from a 2016 high around 1.1600, the pair is now retesting a previous resistance area, a scenario that tends to draw in buyers in an uptrend environment.  Throw in the Fibonacci retracement tool for another argument to draw in buyers, and if the reversal back up happens, look for another retest of the 1.1600 and possibly beyond if the recent broad USD sentiment holds.

NZD/JPY: 1-Hour

NZD/JPY 1-Hour Forex Chart

NZD/JPY 1-Hour Forex Chart

Since mid-April, NZD/JPY has been on a strong move to the downside, now testing a major support area that goes all the way back to mid-2015 around 73.00. The bulls seem to be holding the area for now, and with the pair currently bouncing higher, look for potential short-term resistance around the falling moving averages, as well as Fibonacci retracment levels between 74.40 to 75.50.

Of course, the real move is IF we finally see 73.00 break, and if so, this short-term setup could turn into a really sweet bearish play with the next major support level not likely to hit until the 68.00 handle (previous major resistance broken).

AUD/NZD: 1-Hour

AUD/NZD 1-Hour Forex Chart

AUD/NZD 1-Hour Forex Chart

For all of you Kiwi traders, we’ve got another fast downtrend but this time with the New Zealand dollar as the benefactor. What is really driving the move lower is the broad Aussie weakness, sparked after the recent surprise rate cut by the Reserve Bank of Australia.

The pair is now retesting the top of a really tight channel and seems to be bouncing lower at the moment. We could see another retest of May lows just above the 1.0700 handle, but if we continue to see a downside move, this could be the start of a larger move lower as this is a major support area that has held since Aug. 2015

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.