Intraday Forex Charts Update – May 10, 2016

CAD/CHF: 1-Hour

CAD/CHF: 1-Hour Forex Chart

CAD/CHF: 1-Hour Forex Chart

CAD/CHF has been consolidating into what looks like a symmetrical triangle, although it also looks kinda like a bearish pennant on the higher time frames. Anyhow, the triangle is about 120 pips tall, so a breakout in either direction could last for the same amount. However, stochastic is already indicating overbought conditions while the moving averages are in a downtrend, with the 100 SMA acting as dynamic resistance, so there’s currently a higher probability of a downside breakout.

EUR/CAD: 1-Hour

EUR/CAD: 1-Hour Forex Chart

EUR/CAD: 1-Hour Forex Chart

EUR/CAD surged higher but encountered resistance at 1.4820 (dashed line), which is a price area with very significant market interest, even on the higher time frames. The bulls are persistent, though, so the pair has been making higher lows, and an ascending triangle pattern has formed in the process. An ascending triangle is a bullish forex chart pattern, so price has a higher probability of moving higher. And if an upside breakout does occur, then the pair will likely move higher for around 200 pips. Stochastic looks promising since it’s already pointing up and moving away from oversold territory, but do note that there’s always a chance that the pair could breakout to the downside, so make sure to prepare for such a scenario as well.

AUD/CAD: 1-Hour

AUD/CAD: 1-Hour Forex Chart

AUD/CAD: 1-Hour Forex Chart

Finally, AUD/CAD has been moving lower but seems to be getting buyers at the 0.9470 handle, and a descending triangle has now formed. A downside breakout is the most likely scenario, although an upside breakout is always a possibility. In any case, a breakout move could have enough momentum for a 180-pip move, based on the height of the pattern. Looking at our technical indicators, stochastic is already signalling overbought conditions, but it’s kinda worrying that the moving averages are very close together since they may cross-over into uptrend mode. As usual, 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.