Intraday Forex Charts Update – May 17, 2016

AUD/JPY: 1-Hour

AUD/JPY: 1-Hour Forex Chart

AUD/JPY: 1-Hour Forex Chart

An ascending triangle is a bullish chart pattern that usually forms at the end of an uptrend, so it’s kinda weird that one has formed on AUD/JPY’s 1-hour time frame since the most recent trend was a down trend. Anyhow, the forex chart pattern is about 210 pips tall, so an upside breakout could potentially last for the same amount. However, do note that the recent trend is a downtrend and stochastic is already indicating overbought conditions, so there’s a chance that the pair could break to the downside instead.

USD/CAD: 1-Hour

USD/CAD: 1-Hour Forex Chart

USD/CAD: 1-Hour Forex Chart

Bulls and bears are fighting it out on USD/CAD’s 1-hour chart, but neither side is ultimately winning since a symmetrical-ish triangle has now clearly formed. Since this is a symmetrical-ish triangle, then that means that either side could win, so we don’t really have a directional bias and a breakout could occur in either direction. If a breakout does occur, then the resulting rally or selloff could potentially last for about 240 pips, based on the height of the forex chart pattern. Stochastic is signalling overbought conditions, though, and the moving averages have just crossed-over into downtrend mode, so the path of least resistance seems to be to the downside for now.

GBP/USD: 1-Hour

GBP/USD: 1-Hour Forex Chart

GBP/USD: 1-Hour Forex Chart

GBP/USD has been moving higher while trapped in a well-respected ascending channel since late February. Presently, price is grinding lower to potentially test the channel’s support area, so y’all better get ready. Looking at our technical indicators, stochastic is still pointing down and moving away from overbought territory, so bears may still be in control and price could still probably move lower. The moving averages look like they’re about to cross-over into uptrend mode, though, so there’s a chance that the pair may move higher without testing the channel’s support area first.

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.