Intraday Forex Analysis – 1 Hour Charts – July 22, 2016

AUDUSD – 1 Hour Chart

The AUDUSD is currently moving within a sideways – and possible triangular – consolidation. The bearish moving averages are tightening and the overall trend is bullish, suggesting that price could be more likely to break to the upside of the consolidation and start attempting a move higher. There could be a buying opportunity as price breaks to the upside of the consolidation or there could be selling opportunity as price breaks to the downside of the consolidation. An upside break could bring a greater price swing than if price moves below the consolidation.

The recent release of Australian Monetary Policy Meeting minutes have influenced a sell-off of the Australian Dollar. This sell-off has continued and price could possibly move even lower if negative Australian economic data is released. With regards to the US Dollar, traders, investors, analysts and economists continue to speculate about a possible Fed rate hike. The current majority believe that a rate change is unlikely for at least a few months. There is no major scheduled news in todays trading sessions that will directly impact this currency pair.

EURGBP – 1 Hour Chart

As mentioned in yesterday’s chart analysis, the EURGBP continues to look indecisive and is lacking market direction. The moving averages confirm this, they keep crossing and are showing no market bias. Price has formed a triangular consolidation pattern and price is moving between the diagonal support and the diagonal resistance. The overall trend is up, suggesting that a break to the upside of the consolidation could be more likely but a selling opportunity could exist if price breaks to the downside.

Due to the UK planning on leaving the EU, there has been a strong GBP sell-off. The UK has appointed a new prime minister (Theresa May) and a new government has now been formed – this has provided some stability and strength to the GBP. The Bank of England haven’t cut rates as expected. The UK is now looking a lot more stable and I don’t expect any major sell-offs or volatility. The future of sterling is still a little uncertain though and most financial experts believe that the GBP will continue to weaken longer-term. UK Manufacturing and Services PMI is set to be released at 0830 UTC today.

EURUSD – 1 Hour Chart

The EURUSD is looking choppy and indecisive. Price was rejected and moved off the trend support line in yesterday’s trading sessions. The bearish moving averages are tightening, suggesting that the bearish momentum is weakening. Price could now be bullish and attempt a move to the trend resistance line. If price is bearish in today’s trading sessions, there could be a selling opportunity if price moves and closes below the trend support line.

The future of the Euro is very unclear (not uncertain, just indecisive). With regards to the US Dollar, traders, investors, analysts and economists continue to speculate about a possible Fed rate hike. The current majority believe that a rate change is unlikely for at least a few months. There is no major scheduled news in todays trading sessions that will directly impact this currency pair.

GBPUSD – 1 Hour Chart

As mentioned in yesterday’s chart analysis, price is looking indecisive and lacking market direction. The moving averages have crossed bullish and price has formed an inverted head and shoulder pattern. This could suggest that price could be bullish in today’s trading sessions but from a technical view, price is looking choppy.

Due to the UK planning on leaving the EU, there has been a strong GBP sell-off. The UK has appointed a new prime minister (Theresa May) and a new government has now been formed – this has provided some stability and strength to the GBP. The Bank of England haven’t cut rates as expected. The UK is now looking a lot more stable and I don’t expect any major sell-offs or volatility. The future of sterling is still a little uncertain though and most financial experts believe that the GBP will continue to weaken longer-term. UK Manufacturing and Services PMI is set to be released at 0830 UTC today.

NZDUSD – 1 Hour Chart

As suggested in yesterday’s chart analysis, price was looking a little over-extended and moved higher in yesterday’s trading sessions. Price has moved and closed above the trend resistance line, suggesting that price may start a longer-term bullish move. The bearish moving averages confirm this, they are tightening and price is attempting to move above them. Buying opportunities could exist around the trend support line. The bullish move is likely to be a retracement of the recent bearish swing. Price could stall or even reverse around the key Fib levels – this could provide selling opportunities.

Due to the correlation between AUD and NZD, the recent release of Australian Monetary Policy Meeting minutes have influenced a sell-off of the New Zealand Dollar. This has been coupled with negative economic news from New Zealand, hence the large bearish move on NZDUSD. With regards to the US Dollar, traders, investors, analysts and economists continue to speculate about a possible Fed rate hike. The current majority believe that a rate change is unlikely for at least a few months. There is no major scheduled news in todays trading sessions that will directly impact this currency pair.

USDCAD – 1 Hour Chart

The USDCAD continues to look a little choppy but is currently bullish. The moving averages are bullish and there is very little resistance against the bullish move, suggesting that price could continue to move higher longer-term. If price pulls back before attempting a move higher, there could be buying opportunities around the dynamic support of the bullish moving averages or around the trend support line.

Traders, investors, analysts and economists continue to speculate about a possible Fed rate hike. The current majority believe that a rate change is unlikely for at least a few months. Canadian Core CPI and Core Retail Sales data is set to be released at 1230 UTC today.

USDCHF – 1 Hour Chart

Price came off the horizontal resistance line again in yesterday’s trading sessions. Price is looking a little choppy but price is in the early stages of forming a clear upwards channel. Price has moved and closed below the bullish moving averages and the moving averages are starting to look a little less bullish, this could mean that price is going to be bearish and attempt a move to the channel support area. If price is bullish in today’s trading sessions, there could be a buying or selling opportunity as price tests the horizontal resistance around 0.9900.

Traders, investors, analysts and economists continue to speculate about a possible Fed rate hike. The current majority believe that a rate change is unlikely for at least a few months. There is no major scheduled news in todays trading sessions that will directly impact this currency pair.

USDJPY –  1 Hour Chart

The USDJPY was very bearish in yesterday’s trading sessions. Price has formed a potential upwards channel but due to the strength of the recent bearish move and that price is freely closing below both moving averages, it could be likely that price continues to be bearish in today’s trading sessions. If price is bearish, there could be selling opportunity as price tests and breaks the channel support line. If the channel support line holds, there could be buying opportunity as price makes it’s move higher.

Traders, investors, analysts and economists continue to speculate about a possible Fed rate hike. The current majority believe that a rate change is unlikely for at least a few months. There is no major scheduled news in todays trading sessions that will directly impact this currency pair.

XAUUSD – 1 Hour Chart

Price was bullish in yesterday’s trading sessions but found resistance around the previous trend support line (identified in yesterday’s chart analysis) and has bounced. The overall trend is still up and price is currently forming an inverted head and shoulder pattern, suggesting that price could be bullish in today’s trading sessions. Price is also closing above the moving averages, suggesting that selling momentum is weakening.

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