Intraday Forex Charts Update – Oct. 19, 2016

EUR/GBP: 1-Hour

EUR/GBP 1-Hour Forex Chart

EUR/GBP 1-Hour Forex Chart

This is a different take on EUR/GBP than my longer-term analysis previously posted, as it may be a short-term opportunity for you euro and pound players out there.  On the one our timeframe, we can see EUR/GBP is breaking out of tight consolidation, behavior that matches up with today’s weak euro sentiment.

The pair did make a move higher after the downside break, but it looks like sellers took this as an opportunity to sell again since it’s holding its levels. A move back down to the previous swing high on the higher time frames makes the potential R:R enticing for short-term players.

NZD/CAD: 1-Hour

NZD/CAD 1-Hour Forex Chart

NZD/CAD 1-Hour Forex Chart

NZD/CAD bulls made a recent attempt to bust out of the channel, but it was a no-go today thanks to broad Loonie strength.  With this fakeout forming, it’s likely we’ll see sellers start to play the channel once again, making the bottom of the channel a possibility in the next week or so a likely target, and a sweet R:R setup.  To make it even sweeter, we see a divergence signal that’s been forming over the past two session, likely increasing the argument for a return to the channel pattern.

USD/CAD: 1-Hour

USD/CAD 1-Hour Forex Chart

USD/CAD 1-Hour Forex Chart

Last but not least, we’ve got a simple support breakdown on USD/CAD. The area around the 1.3050 handle held like a champ throughout September, but it looks like it might be time for it to break, especially with fresh Canadian dollar strength.

If the breakdown continues, the previous swing low from the beginning of September is the likely next support area, but we’d probably wait for a solid break of the 1.3000 psychological handle before putting up any real size on this short-term opportunity.

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.