Intraday Forex Analysis – 1 Hour Charts – July 05, 2016


AUDUSD – 1 Hour Chart

AUDUSD 05.07.2016

The AUDUSD is currently retracing after a recent bullish run. The moving averages continue to look bullish, suggesting that bullish momentum may continue and that we could see the major sell-off from the EU referendum results fully recover. Buying opportunities could exist around the bullish moving averages and around the trend support line (currently sitting at 0.7480).

Due to the UK leaving the EU, the USD has strengthened. As economic uncertainty continues, traders and investors could continue to buy safe heaven financial assets like the Japanese Yen, the US Dollar and GOLD – possibly causing the AUDUSD to move lower. There was negative AUD news data during the last trading session and a no change announcement to Australia’s cash rate. It has also been announced that the recent election results in Australia may cause a downgrade in their credit rating. This news events could weaken the AUD.

EURGBP – 1 Hour Chart

EURGBP 05.07.2016

As suggested in yesterday’s chart analysis, the EURGBP found support at the previous horizontal resistance and has moved higher. The bullish moving averages continue to widen, suggesting that an upside move could continue. Potential long opportunities could exist around the bullish moving averages. If the horizontal support at 0.8365 is tested again, we could see price close below the support and move lower.

Due to the UK leaving the EU, there has been a strong GBP sell-off. The Bank of England have suggested that a rate cut is likely to happen before the end of the year – this could give strength to the EURGBP and we may see this pair continue to move higher. UK Services PMI is set for release at 0830 UTC and there is a Bank of England speech at 1000 UTC. The speech may cause some volatility for GBP pairs. It a rate cut is suggested during the speech, we could see the EURGBP move higher.

EURUSD – 1 Hour Chart

EURUSD 05.07.2016

The EURUSD found dynamic support at the longer-term moving average and has been bullish (as predicted in yesterday’s chart analysis). Price continues to move within the identified upwards channel. Buying opportunities could exist around the upwards channel support and around the bullish moving averages. There is a horizontal resistance area at 1.1165. Price may stall or reverse around this level.

Due to the UK leaving the EU, the USD has strengthened. As economic uncertainty continues, traders and investors could continue to buy safe heaven financial assets like the Japanese Yen, the US Dollar and GOLD – possibly causing the EURUSD to move lower.

GBPUSD – 1 Hour Chart

GBPUSD 05.07.2016

Price has moved below the consolidation (identified in yesterday’s chart analysis), and is attempting a move lower. I suspect that the GBPUSD will move below the recent swing low at 1.3145. The bearish moving averages are widening and are looking more bearish, confirming that a downside move is likely. Selling opportunities could exist around the bearish moving averages.

Due to the UK leaving the EU, the USD has strengthened and the GBP continues to weaken. As economic uncertainty continues, traders and investors could continue to buy safe heaven financial assets like the Japanese Yen, the US Dollar and GOLD – possibly causing the GBPUSD to move lower. The Bank of England have suggested that a rate cut is likely to happen before the end of the year – this could depreciate the GBPUSD and we may see this pair continue to move lower. UK Services PMI is set for release at 0830 UTC and there is a Bank of England speech at 1000 UTC. The speech may cause some volatility for GBP pairs. It a rate cut is suggested during the speech, we could see the GBPUSD fall further. Mark Carney may try to soften the Brexit effect and could focus on more positive aspects of the economy. His talk could provide some confidence and price may rally slightly.

NZDUSD – 1 Hour Chart

NZDUSD 05.07.2016

The NZDUSD recovered the Brexit move in yesterday’s trading and has since moved lower. The moving averages still look bullish, suggesting that price could move higher. Buying opportunities may present themselves around the bullish moving averages, around the trend support line and around the 38.2%, 50.0% and 61.8% Fib levels.

Due to the UK leaving the EU, the USD has strengthened. As economic uncertainty continues, traders and investors could continue to buy safe heaven financial assets like the Japanese Yen, the US Dollar and GOLD – possibly causing the NZDUSD to move lower. There is no major scheduled news that will impact the NZDUSD in today’s trading sessions.

USDCAD – 1 Hour Chart

USDCAD 05.07.2016

As identified in yesterday’s chart analysis, the USDCAD was bearish in yesterday’s trading sessions and was rejected at the identified channel support line. Price continues to move within the bearish channel and continues to near the potential longer-term channel support line (currently sitting at 1.2735). Selling opportunities may exist around the bearish moving averages and around the channel resistance.

Due to the UK leaving the EU, the USD has strengthened. As economic uncertainty continues, traders and investors are likely to carry on buying safe heaven assets like the Japanese Yen, the US Dollar and GOLD. This could help the USDCAD move higher over coming days and weeks. If the OIL markets appreciate though, we could see the CAD strengthen. This may cause a slightly hesitant and indecisive USDCAD.

USDCHF – 1 Hour Chart

USDCHF 05.07.2016

The USDCHF continues to look bearish – the bearish moving averages continue to widen, which confirms this. Selling opportunities could exist around the bearish moving averages and around the trend resistance line (currently sitting at 0.9750). Price is nearing the potential bullish channel support though and price may now start becoming more bullish. I suggest looking for bullish opportunities and only holding very short-term short positions.

Due to the UK leaving the EU, the USD has strengthened. As economic uncertainty continues, traders and investors could continue to buy safe heaven financial assets like the Japanese Yen, the US Dollar and GOLD – possibly causing the USDCHF to move higher.

USDJPY – 1 Hour Chart

USDJPY - 05.07.2016

The USDJPY is starting to look very bearish – the moving averages have crossed bearish and price is moving and closing below minor swing lows. Selling opportunities could exist as price tests the bearish moving averages and around the bearish trend line (currently sitting at 102.35).

Due to the UK leaving the EU, the JPY has strengthened. As economic uncertainty continues, traders and investors are likely to carry on buying safe heaven assets like the Japanese Yen, the US Dollar and GOLD. This could cause some hesitation and indecision on the USDJPY, as the USD and JPY is being bought.

XAUUSD – 1 Hour Chart

XAUUSD 05.07.2016

GOLD is retracing after a recent bullish move higher. The bullish moving averages continue to look strong and are widening, suggesting that price could move higher. Buying opportunities could present themselves around the bullish moving averages and around the previous horizontal resistance (now support) at 1339.50.

Due to the UK leaving the EU, the markets are very uncertain. As economic uncertainty continues, traders and investors are likely to carry on buying safe heaven assets like the Japanese Yen, the US Dollar and GOLD. This may help GOLD continue to move higher.