Intraday Forex Charts Update – August 18, 2016

EUR/GBP: 1-Hour

EUR/GBP: 1-Hour Forex Chart

EUR/GBP: 1-Hour Forex Chart

Okay, for our first setup, check out that there textbook break-and-retest setup for EUR/GBP. As y’all can see, price hesitated a bit, but ultimately broke past resistance at the 0.8600 major psychological level. However, the euro’s assault against the pound was thwarted when the pair reached the 0.8720 handle and the euro bulls were forced to retreat. Now, the euro bulls appear to be licking their wounds since the pair has began to consolidate at the broken resistance at 0.8600, giving us a break-and-retest setup in the process. And looking at our technical indicators, there’s a better-than-average chance that the pair could move higher. Stochastic, for one, is already signalling oversold conditions. Another is that the moving averages are still in uptrend mode and the 200 SMA seems to be acting as dynamic support to boot.

AUD/CHF: 1-Hour

AUD/CHF: 1-Hour Forex Chart

AUD/CHF: 1-Hour Forex Chart

Next item on our list is that there trend line bounce on AUD/CHF’s 1-hour chart. See that rising trend line? Well, that has been respected since mid June. And as luck would have it, price is currently testing it now, so you better start looking for opportunities to go long, especially since stochastic is already indicating oversold conditions. In addition, the trend line currently lines up rather nicely with the area of interest at 0.7360 (dashed line), which is another technical argument for support to hold. The only worrying thing is that the moving averages are already signalling a downtrend, since that may attract enough bears to attempt a downside trend line break.

CAD/JPY: 1-Hour

CAD/JPY: 1-Hour Forex Chart

CAD/JPY: 1-Hour Forex Chart

Our final setup is for the breakout artists out there. As y’all can see, CAD/JPY has been respecting that there rising trend line. However, the pair has also been getting sellers recently, so much so that price began to consolidate into what appears to be a symmetrical triangle. A symmetrical triangle could break in either direction, so it would be prudent to prepare for both scenarios. And if a breakout does occur, then the pair could potentially move in either direction for about 120 pips, based on the height of the triangle’s base.

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.