Intraday Forex Analysis – 1 Hour Charts – July 08, 2016


AUDUSD – 1 Hour Chart

AUDUSD - 08.07.2016

As suggested in yesterday’s chart analysis, the AUDUSD was bearish in yesterday’s trading sessions. Price has formed a trend resistance line, as well as the longer-term bullish trend lines. Price could consolidate between these areas and form a tightening symmetrical triangle pattern. The moving averages confirm this – they have crossed a 2nd time within a few days, suggesting that price is indecisive. There could be short-term buying and selling opportunities around the consolidation support and resistance levels. There could also be a longer-term trade as price prices out of the consolidation.

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 Non-Farm Payrolls and Unemployment Rate is set to be released at 1230 UTC today. Historically, these news have caused a lot of volatility and large price swings on USD pairs.

EURGBP – 1 Hour Chart

EURGBP 08.07.2016

The EURGBP continues to look bullish but there are some signs that price is losing buying momentum and that price could soon move lower. These signs include price forming the horizontal resistance at 0.8600, price moving and closing below the shorter-term moving average and price forming a minor lower swing low. I suggest looking for shorting opportunities rather than buying opportunities in today’s trading sessions. If price moves above the horizontal resistance at 0.8600, there could be an opportunity to go long.

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.

EURUSD – 1 Hour Chart

EURUSD 08.07.2016

As suggested in yesterday’s chart analysis, the trend resistance line held and price moved lower in yesterday’s trading sessions. Price has now moved and closed above the trend resistance line, suggesting that price may now start moving higher. The bearish moving averages confirm this as they are starting to tighten and are becoming more bullish. Buying opportunities could exist around the trend support line currently sitting at 1.1060 and around the horizontal support at 1.1030. There is a clear horizontal resistance around 1.1165. Price may stall or reverse at this area.

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 Non-Farm Payrolls and Unemployment Rate is set to be released at 1230 UTC today. Historically, these news have caused a lot of volatility and large price swings on USD pairs.

GBPUSD – 1 Hour Chart

GBPUSD 08.07.2016

The GBPUSD moved lower in yesterday’s trading sessions and reversed around the 1.2870 horizontal support (this was predicted in yesterday’s chart analysis). The bearish moving averages are starting to tighten, so price could reach and test the trend resistance line. Selling opportunities could exist at the trend resistance line and around the dynamic resistance of the moving averages. Selling momentum is looking a little tired, we could see price close above the trend resistance line and move higher in today’s trading sessions.

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. US Non-Farm Payrolls and Unemployment Rate is set to be released at 1230 UTC today. Historically, these news have caused a lot of volatility and large price swings on USD pairs.

NZDUSD – 1 Hour Chart

NZDUSD 08.07.2016

The NZDUSD is looking bullish and has formed some clear upwards trend support and resistance lines. Price could be bearish in today’s trading sessions, as price retraces some of the recent bullish run and comes off the trend resistance line.

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 Non-Farm Payrolls and Unemployment Rate is set to be released at 1230 UTC today. Historically, these news have caused a lot of volatility and large price swings on USD pairs.

USDCAD – 1 Hour Chart

USDCAD 08.07.2016

As identified in yesterday’s chart analysis, price has been testing and bouncing off the tightening consolidation pattern support and resistance. Price is currently testing the consolidation resistance and could move lower. Buying and selling opportunities could exist at the consolidation support and resistance areas. A buying or selling opportunity could also exist when price breaks out of 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 Non-Farm Payrolls and Unemployment Rate is set to be released at 1230 UTC today. Historically, these news have caused a lot of volatility and large price swings on USD pairs. Canadian Employment Change and Unemployment Rate is also set to be released at the same time. The USDCAD could be very active during the US session.

USDCHF – 1 Hour Chart

USDCHF - 08.07.2016

As suggested in yesterday’s chart analysis, price has come off the consolidation resistance and price continues to consolidate. The consolidation has now become so tight that it is almost inevitable that price will breakout at some point in today’s trading sessions. A buying or selling opportunity could exist as price breaks out.

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 Non-Farm Payrolls and Unemployment Rate is set to be released at 1230 UTC today. Historically, these news have caused a lot of volatility and large price swings on USD pairs.

USDJPY – 1 Hour Chart

USDJPY 08.07.2016

The USDJPY found dynamic resistance at the shorter-term moving average and moved lower in yesterday’s trading sessions. Price is now testing the horizontal support at 100.30. Selling opportunities could exist if price moves below the horizontal support, around the moving averages and around the trend resistance line. If price moves and closes above the trend resistance line, we could see a longer-term bullish move on the USDJPY.

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 Non-Farm Payrolls and Unemployment Rate is set to be released at 1230 UTC today. Historically, these news have caused a lot of volatility and large price swings on USD pairs.

XAUUSD – 1 Hour Chart

GOLD 08.07.2016

GOLD was bearish in yesterday’s trading sessions. Price moved below the shorter-term moving average but found support at the longer-term moving average and at the previous resistance level around 1352 (as mentioned in yesterday’s chart analysis). The bullish moving averages are tightening and looking slightly more bearish. Price could test the horizontal support level again in today’s trading or even move below this area. If it does, we may see price retrace back to the 1337 area.

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.