Intraday Forex Charts Update – June 28, 2016

EUR/USD: 1-Hour

EUR/USD: 1-Hour Forex Chart

EUR/USD: 1-Hour Forex Chart

What seems to be a symmetrical triangle is beginning to form on EUR/USD’s 1-hour chart, which implies that bulls and bears are playing a game of tug-of-war. This also means that the pair could break to the upside or the downside, so make sure to prepare for both breakout scenarios. In any case, the height of the triangle is roughly 250 pips, so a breakout move could potentially last for the same amount. The bearish momentum is rather strong, though, and stochastic is pointing back down and moving away from overbought territory, so the path of least resistance appears to be to the downside (for now at least).

EUR/NZD: 1-Hour

EUR/NZD: 1-Hour Forex Chart

EUR/NZD: 1-Hour Forex Chart

EUR/NZD has been drifting lower at a steady pace while more or less contained inside that there descending channel. Price is currently milling about near the channel’s resistance area and the 100 SMA seems to be holding as dynamic resistance to boot, so get ready if you plan to ride the downtrend. The only worrying thing is that stochastic just recently bounced off the oversold area, which implies that there’s some bullish interest, so make sure to practice proper risk management if you decide to trade this setup, okay?

EUR/GBP: 1-Hour

EUR/GBP: 1-Hour Forex Chart

EUR/GBP: 1-Hour Forex Chart

No fancy chart patterns for this one. What we have here is a simple Fibonacci retracement play. And as y’all can see, EUR/GBP surged with substantial and convincing bullish momentum past resistance at the 0.7990 level (dashed horizontal line). The pair then got violently rejected at the 0.8300 major psychological level, but used the broken resistance area at 0.7990 as support to launch even higher. Now, the pair seems to be reluctantly pulling back after finding some seller at the 0.8368 handle and is making its way back down again. And applying our Fibonacci tool, the most conservative pullback area seems to be at the 50% retracement level since it sits right smack on the resistance-turned-support area at 0.7990.

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.