Intraday Forex Charts Update – August 4, 2016

USD/CHF: 1-Hour

USD/CHF: 1-Hour Forex Chart

USD/CHF: 1-Hour Forex Chart

First up on today’s Greenback special is that there potential bounce from the area of interest at 0.9740 on USD/CHF’s 1-hour chart. As y’all can see, the pair recently moved with strong bearish momentum after smashing a rising trend line. However, the pair encountered lots of buyers at 0.9640 and was repelled back to the area of interest at 0.9740.

Will the area of interest serve as resistance? Well, there’s a better-than-average chance that it might. For one, stochastic is already pointing down and moving away from overbought territory. Another technical argument is that the moving averages have already crossed-over into downtrend mode.

NZD/USD: 1-Hour

NZD/USD: 1-Hour Forex Chart

NZD/USD: 1-Hour Forex Chart

Next on our list is that there relatively fresh trend line break on NZD/USD’s chart. Based on the chart, we can see that a well-respected rising trend line was recently invalidated. However, the pair seems hesitant to go lower.

This gives us two scenarios: (1) the pair climbs back above the trend line and continues trending higher, or (2) the pair uses the broken trend line as a launching pad for a down-move.

Stochastic seems to support the down-move scenario since it’s about to reach the overbought area. The moving averages, meanwhile, are in uptrend mode, and thereby support the uptrend continuation scenario. In any case, just make sure to practice proper risk management, alright?

USD/JPY: 1-Hour

USD/JPY: 1-Hour Forex Chart

USD/JPY: 1-Hour Forex Chart

Finally, we’ve got a consolidation pattern for USD/JPY. As y’all can see on the chart above, the pair recently consolidated into a mini channel before breaking lower. And presently, the pair is consolidating into yet another mini channel, so there’s a chance that the pair move break lower again.

Looking at our technical indicators, we can see that the moving averages are indicating a healthy downtrend. Meanwhile, stochastic is pointing down and moving away from overbought territory. And these signals, together with how price acted previously, imply that there’s a higher probability of further downside moves.

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.