Intraday Forex Charts Update – July 4, 2016

NZD/CHF: 1-Hour

NZD/CHF: 1-Hour Forex Chart

NZD/CHF: 1-Hour Forex Chart

Looks like NZD/CHF is about ready to drop back down since it has been testing that there ascending channel’s resistance area for quite some time now. Also, stochastic is already signalling overbought conditions. Shorting from the channel’s resistance area is a counter-trend trade and is therefore extra risky, though, so more conservative forex traders may wanna sit this one out and wait for an opportunity to go long if or when price approaches the channel’s support area.

AUD/NZD: 1-Hour

AUD/NZD: 1-Hour Forex Chart

AUD/NZD: 1-Hour Forex Chart

AUD/NZD has been trading sideways in a rectangle pattern, with resistance at 1.0510 and support at 1.0430, which gives us a rather tight 80-pip trading range. The pair very recently attempted a downside breakout, but the pair was pushed back into the rectangle in short order. The bulls quickly ran out of steam once the pair was back in the rectangle, though. This implies that the defenses of the bulls at 1.0430 are still strong, but cracks are beginning to show, so there’s a higher-than-average chance that the next downside breakout may succeed. Moreover, the previous trend was a downtrend and the moving averages are currently in downtrend mode, which reinforces our downside bias.

NZD/JPY: 1-Hour

NZD/JPY: 1-Hour Forex Chart

NZD/JPY: 1-Hour Forex Chart

After a rather large drop, NZD/JPY has been steadily clawing its way higher inside that there ascending channel. Price appears to have recently broken past resistance at 73.70 (dashed horizontal line), so the bulls may be gunning for 74.60 next (solid horizontal line). It’s also encouraging to see that price has been closing above the 100 and 200 SMA’s since that indicates strong bullish interest. It is kinda worrying that stochastic is already indicating overbought conditions, though, since bears may use that as a signal to try and push the pair lower. In any case, 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.