Intraday Forex Analysis – 1 Hour Charts – July 07, 2016


AUDUSD – 1 Hour Chart

AUDUSD 07.07.2016

The AUDUSD was bullish in yesterday’s trading sessions. The moving averages have crossed bearish and are widening – suggesting that price could be bearish in today’s trading sessions. If the AUDUSD is bearish, price could reach the trend support line currently sitting at 0.7435 and the horizontal support at 0.7420. If price does reach these support areas, there could be possible buying opportunities. If price moves and closes below the horizontal support level, there could be selling opportunities at the break of support or if price returns to the support as resistance.

Due to the UK planning on 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. Recent Australian economic data has been negative and a no change announcement to Australia’s cash rate was announced this week. It has also been announced that the recent election results in Australia may cause a downgrade in their credit rating. These events have weakened the AUD. This weakness may continue as uncertainty over Australia’s economy continues. US ADP Non-Farm Employment Change is set to be released at 1215 UTC today. This is followed by US Unemployment Change at 1230 UTC and Crude Oil Inventories at 1500 UTC. It is likely to be a very active day for USD pairs.

EURGBP – 1 Hour Chart

EURGBP 07.07.2016

Price has formed an upwards channel and price is currently nearing the channel support area. The moving averages continue to be bullish and widen, suggesting that the upwards channel could continue and that the EURGBP could continue to be bullish. Buying opportunities could exist around the dynamic support of the bullish moving averages and around the channel support. If price moves and closes below the channel support area, the EURGBP could move lower and retrace back to 0.8350 area.

Due to the UK planning on 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 Manufacturing Production is set to be released at 0830 UTC.

EURUSD – 1 Hour Chart

EURUSD 07.07.2016

Price bounced off the horizontal support at 1.1030 (identified in yesterday’s chart analysis) and was bullish in yesterday’s trading sessions. The EURUSD is currently around the trend resistance line. The moving averages have crossed bearish, suggesting that the trend resistance line may hold and price could move lower. If the trend resistance does not hold, there could be a selling opportunity around the horizontal resistance at 1.1165. There could also be selling opportunities if price tests and breaks the horizontal support at 1.1030.

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. US ADP Non-Farm Employment Change is set to be released at 1215 UTC today. This is followed by US Unemployment Change at 1230 UTC and Crude Oil Inventories at 1500 UTC. It is likely to be a very active day for USD pairs.

GBPUSD – 1 Hour Chart

GBPUSD 07.07.2016

Price has started to retrace after the recent bearish run and is currently testing the dynamic resistance of the shorter-term moving average. Selling opportunities could exist around either of the bearish moving averages and at the longer-term trend resistance line. If price does move lower in today’s trading, there is a minor horizontal support around 1.2870. Price may stall or even reverse around this area.

Due to the UK planning on 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 Manufacturing Production is set to be released at 0830 UTC today. US ADP Non-Farm Employment Change is set to be released at 1215 UTC. This is followed by US Unemployment Change at 1230 UTC and Crude Oil Inventories at 1500 UTC. It is likely to be a very active day for USD pairs.

NZDUSD – 1 Hour Chart

NZDUSD 07.07.2016

Price was very bullish in yesterday’s trading sessions. The moving averages have crossed bearish but this is likely due to hesitation and indecision in the market, rather than suggesting that price could move to the downside. From a technical view, there is very little to watch on the NZDUSD in today’s trading sessions. Other currency pairs may provide better trading opportunities.

Due to the UK planning on 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 ADP Non-Farm Employment Change is set to be released at 1215 UTC today. This is followed by US Unemployment Change at 1230 UTC and Crude Oil Inventories at 1500 UTC. It is likely to be a very active day for USD pairs.

USDCAD – 1 Hour Chart

USDCAD 07.07.2016

USDCAD is consolidating and forming a tightening symmetrical triangle pattern. The moving averages have crossed bullish but this is likely due to hesitation and indecision in the market, rather than suggesting that price could move to the upside. From a technical view, it may be best to wait for a consolidation breakout, rather than taking short-term long and short positions within the consolidation.

Due to the UK planning on 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 ADP Non-Farm Employment Change is set to be released at 1215 UTC today. This is followed by US Unemployment Change at 1230 UTC and Crude Oil Inventories at 1500 UTC. It is likely to be a very active day for USD pairs.

USDCHF – 1 Hour Chart

USDCHF 07.07.2016

Price is currently around the trend support line. The moving averages have crossed bullish and are widening – suggesting that the support area may hold and that price could move higher in today’s trading sessions. There is a trend resistance line currently sitting at 0.9795. There is a chance that price could consolidate between this resistance area and the support area. If there is enough buying momentum though, it is likely that price could move above the resistance line and trend higher.

Due to the UK planning on 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 ADP Non-Farm Employment Change is set to be released at 1215 UTC today. This is followed by US Unemployment Change at 1230 UTC and Crude Oil Inventories at 1500 UTC. It is likely to be a very active day for USD pairs.

USDJPY – 1 Hour Chart

USDJPY 07.07.2016

As suggested in yesterday’s chart analysis, price found dynamic resistance at one of the moving averages and has moved lower. Price is looking a little over-extended now, so we could see price retrace and be bullish in today’s trading sessions. Potential selling opportunities could exist around the bearish moving averages and around the trend resistance line. The bearish moving averages continue to widen, suggesting that price could continue to move lower. Though, a horizontal support has formed at 100.30 and price could stall or reverse bullish around this area.

Due to the UK planning on 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 ADP Non-Farm Employment Change is set to be released at 1215 UTC today. This is followed by US Unemployment Change at 1230 UTC and Crude Oil Inventories at 1500 UTC. It is likely to be a very active day for USD pairs.

XAUUSD – 1 Hour Chart

XAUUSD 07.07.2016

GOLD is retracing after a recent bullish run. Buying opportunities could exist if price reaches the trend support line or around the dynamic support of the bullish moving averages. If price moves below these support areas, there is a horizontal support level at 1351.75.

Due to the UK planning on 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.