Intraday Forex Charts Update – May 13, 2016

CAD/CHF: 1-Hour

CAD/CHF: 1-hour Forex Chart

CAD/CHF: 1-hour Forex Chart

Looks like there’s a better-than-average chance that CAD/CHF will move lower since a rising wedge pattern seems to have formed on its 1-hour time frame. The forex chart pattern is about 120 pips tall, so a downside breakout may last for the same amount. Do note that there’s a slim chance of an upside breakout, though, since the moving averages have just recently crossed-over into uptrend mode while stochastic is pointing back up again without visiting the oversold area, which implies strong bullish interest.

NZD/CHF: 1-Hour

NZD/CHF: 1-hour Forex Chart

NZD/CHF: 1-hour Forex Chart

As I keep saying again and again, one of the more conservative ways to play a descending channel is to look for shorting opportunities near the channel’s resistance area. And as luck would have it, that’s where price is currently milling about, so y’all better start looking. The way price is hugging the channel’s resistance area bugs a little, however, since that could mean that bulls are gathering strength for an upside channel breakout. But at least the 200 SMA seems to be acting as dynamic resistance, which is a real confidence booster for our downside directional bias.

USD/JPY: 1-Hour

USD/JPY: 1-hour Forex Chart

USD/JPY: 1-hour Forex Chart

After moving with substantial bearish momentum, USD/JPY got violently rejected when it reached the 105.60 handle and was pushed higher. Price then found resistance at the 109.30 handle dashed line), which happens to be a price area with significant market interest. However, the bulls are not giving up without a fight and so what seems to be an ascending triangle has now formed, although it also looks kinda like a pennant on the higher time frames. Anyhow, if the pattern is validated by an upside breakout, then the pair could potentially move higher for about 100 pips, based on the height of the pattern. Do note that there’s always a chance that price will break out in the opposite direction, but that seems unlikely since stochastic is pointing up while the moving averages are now in uptrend mode.

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.