Intraday Forex Charts Update – June 16, 2016

AUD/CAD: 1-Hour

AUD/CAD: 1-Hour Forex Chart

AUD/CAD: 1-Hour Forex Chart

First up in today’s channel pattern special is that there ascending channel on AUD/CAD’s 1-hour chart. Price is currently milling about near the channel’s resistance area, which is just below the 0.9600 major psychological level, so the pair may start moving back down soon. Do note, however, that stochastic just recently and very briefly touched the oversold area before rebounding, which implies strong bullish interest, so an upside channel breakout is a possibility.

AUD/USD: 1-Hour

AUD/USD: 1-Hour Forex Chart

AUD/USD: 1-Hour Forex Chart

Next, we’ve got a descending channel for AUD/USD, and chances are good that the pair may move back up again since price is currently testing the channel’s support area while stochastic is already signalling oversold conditions. The bearish momentum is strong, though, and the moving averages have just recently crossed over into downtrend mode. Moreover, the down trend was confirmed on the 1-hour chart after the pair broke that well-respected rising trend line (dashed line). All those technical arguments taken together means that a lot of bears may have their sights on the pair, so it would be prudent to wait for support to actually form before going long, since the downtrend may accelerate, which could result in a downside channel breakout.

NZD/CAD: 1-Hour

NZD/CAD: 1-Hour Forex Chart

NZD/CAD: 1-Hour Forex Chart

Finally, we’ve got a steady ascending channel for NZD/CAD. And price is currently testing the channel’s resistance area, so better start looking for opportunities to go short, especially since stochastic is already indicating overbought conditions. As usual, just make sure to practice proper risk management should you find a trade based on this or any of the other charts, alright?

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.

  • RedRocket51

    I’m new to trading in the forex and have been trading for about less then 2 years.
    Do you think the aud/usd is going to break out and trade lower ???

    • Big Pippin

      Heya RedRocket! The descending channel was respected after a false breakout so I don’t think we’ll be seeing a downside channel breakout attempt soon, unless we see a major fundamental catalyst like a hard slump in iron ore prices or a very hawkish speech from a Fed official or something.

      But since the descending channel is still essentially in play, price will likely continue trending lower. A solid break past 0.7430 will mean that price will likely continue going up, though. You can see why if you zoom out to the daily or weekly chart and scroll to the early 2000’s.