Intraday Forex Charts Update – June 21, 2016

CAD/CHF: 1-Hour

CAD/CHF: 1-Hour Forex Chart

CAD/CHF: 1-Hour Forex Chart

CAD/CHF was able to finally smash past the well-respected support area around the 0.7520 handle (highlighted area) last week, only to meet fresh buyers when the pair reached the 0.7390 handle. The rejection was so violent that the pair was pushed back to the broken support area at 0.7520, and it looks like the broken support area is now serving as resistance since the pair got softly rejected and is making its way down again. And using our Fibonacci tool  we can also see that 0.7520 sits right smack on the 61.8% Fibonacci retracement level, which reinforces our directional bias to the downside. Also, the 200 SMA seems to be acting as dynamic resistance. The only thing to worry about is that stochastic is about to reach oversold territory, so make sure to practice proper risk management should you find a trade based on this or any of the other charts.

AUD/JPY: 1-Hour

AUD/JPY: 1-Hour Forex Chart

AUD/JPY: 1-Hour Forex Chart

After trading sideways while trapped inside a rectangle since the start of May, AUD/JPY finally staged a successful downside channel breakout. The bearish momentum was strong, but it quickly lost steam when it reached the well-defended support area around 75.60, so much so that the pair was forced to retreat back to the channel’s broken support area at 78.30, which is apparently serving as resistance presently. If resistance holds, then the pair could move lower, especially since stochastic is beginning to point down while moving away from overbought territory while the moving averages are already in downtrend mode, with the 200 SMA currently holding as dynamic resistance to boot. Also, the 78.30 is just below the 61.8% Fibonacci retracement level.

GBP/NZD: 1-Hour

GBP/NZD: 1-Hour Forex Chart

GBP/NZD: 1-Hour Forex Chart

GBP/NZD had been drifting gracefully lower, temporarily getting rejected only when it reached the 2.0700 major psychological level. However, the pair finally found solid very support at 2.0000, another major psychological level, and the pair rebounded after consolidating for a while. Now, the pair has made its way back up to 2.0700 and is beginning to consolidate again. Will the pair move lower again? Well, looking at our technical indicators, the moving averages have just recently crossed-over into uptrend mode while stochastic is about to indicate oversold conditions already, so further moves to the upside seems to be more likely. The 2.0700 level has significant market interest, though, even on the higher time frames, so there’s always a chance that the pair may move lower. Moreover, 2.0700 lines up rather nicely with the 61.8% Fibonacci retracement level, and other forex traders may be looking at that.

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.