Intraday Forex Charts Update – Nov. 4, 2016

NZD/JPY: 1-Hour

NZD/JPY: 1-Hour Forex Chart

NZD/JPY: 1-Hour Forex Chart

NZD/JPY has been moving ever higher recently. And if we connect the most recent peaks as well as the most recent troughs, then we get a nice ascending channel. Unfortunately for the more conservative forex traders out there, the pair is currently near the channel’s resistance area. The currently available setups are therefore either an upside channel breakout or a down-swing towards the channel’s support area. Both setups are obviously more risky than hopping on the trend by looking for opportunities to go long near the channel’s support area.

USD/JPY: 1-Hour

USD/JPY: 1-Hour Forex Chart

USD/JPY: 1-Hour Forex Chart

Next, USD/JPY has been consolidating while tapering into a point. In the process, a symmetrical triangle appears to have formed. Although it also looks like a bearish pennant on the higher time frames. Anyhow, a symmetrical triangle could break in either direction. And if a breakout does occur, then the resulting move could potentially last for around 80 pips. However, if we’re looking at a bearish pennant, then a downside breakout may have enough steam for a 250-pip move.

NZD/USD: 1-Hour

NZD/USD: 1-Hour Forex Chart

NZD/USD: 1-Hour Forex Chart

Finally, NZD/USD validated a double bottom by breaking to the topside. However, the pair seems to have found some sellers at 0.7340, since the upswing has stalled. If enough sellers come in to cause a pullback, then the likely pullback area would be at the broken resistance at the 0.7250 minor psychological level, since that’s the double bottom’s neckline. And if use our handy Fibonacci tool, we can also see that 0.7250 lines up with the 50% retracement level. Moreover, if price does dip to 0.7250, then the 100 SMA may even act as dynamic support.

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.