Intraday Forex Analysis – 1 Hour Charts – July 06, 2016

AUDUSD – 1 Hour Chart

The AUDUSD was bearish in yesterday’s trading sessions. The bullish moving averages are tightening, suggesting that price could continue it’s bearish run. If price moves higher before moving lower, there could be selling opportunities around the moving averages and around the bearish trend line (currently sitting at 0.7520).

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. Recently, there was some negative AUD news data released 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. As predicted in yesterday’s chart analysis, these events have weakened the AUD. This weakness may continue as uncertainty over Australia’s economy continues.

EURGBP – 1 Hour Chart

As suggested in yesterday’s chart analysis, the EURGBP was bullish during yesterday’s trading sessions. The bullish moving averages are still strong and continue to widen, but the bullish move is now looking “tired” and we could see price retrace. Buying opportunities could present themselves as price tests the dynamic support of the moving averages and around the trend support line (currently sitting at 0.8470).

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. The European Central Bank’s (ECB) President is planning on giving a speech today at 0800 UTC. This event is likely to cause some movement for EUR Forex pairs.

EURUSD – 1 Hour Chart

The EURUSD was bearish in yesterday’s trading sessions. The bullish moving averages are tightening and look like they could cross bearish, suggesting that a bearish move may continue. If price pulls back and if the moving averages cross bearish, there could be selling opportunities around the moving averages. There is also a longer-term trend resistance line currently sitting at 1.1130. There is a horizontal support level at 1.1030. Price may stall, bounce or even reverse, if this area is tested.

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. The European Central Bank’s (ECB) President is planning on giving a speech today at 0800 UTC. This event is likely to cause some movement for EUR Forex pairs. There is also US Non-Manufacturing PMI at 1400 UTC. FOMC Meeting Minutes are set to be released at 1800 UTC.

GBPUSD – 1 Hour Chart

The GBPUSD moved much lower in yesterday’s trading sessions. The bearish moving averages continue to widen but price looks like it may retrace before attempting a move lower. Selling opportunities could exist at the bearish moving averages and around the trend resistance line (currently sitting at 1.3195).

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. US Non-Manufacturing PMI is set to be released at 1400 UTC today. FOMC Meeting Minutes are set to be released at 1800 UTC.

NZDUSD – 1 Hour Chart

Price was very bearish in yesterday’s trading sessions. The moving averages are still bullish but they are tightening, suggesting that buying momentum is weakening. From a technical view, there is very little to watch in today’s trading sessions. Other currency pairs may provide better trading opportunities.

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. US Non-Manufacturing PMI is set to be released at 1400 UTC today. FOMC Meeting Minutes are set to be released at 1800 UTC.

USDCAD – 1 Hour Chart

Price was very bullish in yesterday’s trading sessions. The moving averages are still bearish but they are tightening, suggesting that selling momentum is weakening. From a technical view, there is very little to watch in today’s trading sessions. If the moving averages cross bullish and price pulls back, there could be buying opportunities around the bullish moving averages. Other currency pairs may provide better trading opportunities.

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. US Non-Manufacturing PMI is set to be released at 1400 UTC today. FOMC Meeting Minutes are set to be released at 1800 UTC. Canadian Trade Balance will also be announced today at 1230 UTC. These news events may cause a very active day for the USDCAD.

USDCHF – 1 Hour Chart

Price was rejected at the downwards channel support (identified in yesterday’s chart analysis) and has moved higher. The bearish moving averages are tightening and could possibly cross bullish in today’s trading sessions, suggesting that a bullish move may continue. Buying opportunities could exist around the dynamic support of the moving averages (if they cross bullish) and at the trend support line.

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. US Non-Manufacturing PMI is set to be released at 1400 UTC today. FOMC Meeting Minutes are set to be released at 1800 UTC.

USDJPY – 1 Hour Chart

The USDJPY has been very bearish and is currently retracing. The bearish moving averages are widening, suggesting that price could continue to move lower. Selling opportunities could exist around the moving averages, around the trend resistance line (currently sitting at 102) and around the previous horizontal support (now resistance) at 102.45.

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. US Non-Manufacturing PMI is set to be released at 1400 UTC today. FOMC Meeting Minutes are set to be released at 1800 UTC.

XAUUSD – 1 Hour Chart

As suggested in yesterday’s chart analysis, price found dynamic support at the shorter-term moving averages and has moved higher. If price retraces, there could be buying opportunities around the previous horizontal resistance (now support) at 1351.75, around the bullish moving averages and around the trend support line. The moving averages are bullish and are widening, suggesting that price could continue to move higher, even after a retracement.

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.

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