Intraday Forex Charts Update – Oct. 7, 2016

EUR/AUD: 1-Hour

EUR/AUD 1-hour Forex Chart

EUR/AUD 1-hour Forex Chart

EUR/AUD has been trading sideways while trapped inside a rectangle with resistance at 1.4760 and support at 1.4560, which gives us a nice, wide 200-pip trading range to play with. Price is currently close to the rectangles resistance area, so y’all better start looking for opportunities to go short. And all the more so since stochastic is about to reach overbought territory. The only thing we have to worry here is that the moving averages have just recently crossed-over into uptrend mode, since that may attract enough bulls to attempt an upside rectangle breakout.

AUD/CHF: 1-Hour

AUD/CHF 1-hour Forex Chart

AUD/CHF 1-hour Forex Chart

Next, AUD/CHF has been trending higher recently, breaking that there falling trend line (dashed line). And if we connect the most recent troughs and peaks, we can see that an ascending channel has formed. Not only that, the pair even used the broken falling trend line as support to bounce higher during the recent swing. However, sellers seem to be determined in defending the mid-channel area since the pair reacted to it, instead of just pushing higher. Moreover, stochastic is already pointing down and moving away from the overbought area. These signals imply that the bears may be taking control, so the pair may be testing the channel’s support area again soon. Just make sure to wait for support to actually form before going long on the pair, though, since the bears may try to stage a downside channel breakout in order to push price back below the trend line.

AUD/USD: 1-Hour

AUD/USD 1-hour Forex Chart

AUD/USD 1-hour Forex Chart

If you don’t really fancy chart patterns, then how about that there Fibonacci play? As y’all can see, the pair recently broke to the downside from an ascending channel that also looks a bit like a rectangle. However, the pair found fresh buyers at the 0.7570 handle, and so the pair was forced to pull back. Looking at our technical indicators, stochastic is just about to indicate overbought conditions. The moving averages, meanwhile, are already in downtrend mode. There is therefore a higher-than-average chance that the pair would continue lower. And using our handy Fibonacci tool, we can see that the pair almost touched the 50% retracement level before sellers returned. And if you’re thinking about jumping in with a short, just make sure to practice proper risk management, okay?

Forex Chart Settings:

Slow Stochastic: 14, 3, 3
100 SMAs: 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.