Intraday Forex Analysis – 1 Hour Chart – August 18, 2016


AUDUSD – 1 Hour Chart

AUDUSD - 18.08.2016

Even though price moved below the consolidation support area (identified in yesterday’s chart analysis), price continues to look a bit indecisive and is lacking direction. The moving averages confirm this, they are crossing frequently and have no clear bias. Selling opportunities could exist around the trend resistance area. A bearish move could stall or reverse around the trend support area.

The Bank of Australia have decided to hold rates at the low of 1.50% – this as well as other poor economic data has contributed to some weakness in the Australian Dollar. As expected, the Fed hasn’t changed US rates but have kept them at the low rate 0.50% – this has contributed to some weakness in the US Dollar. Very positive Australian employment data was released overnight (UTC). US Manufacturing and Unemployment data is set to be released at 1230 UTC today.

EURGBP – 1 Hour Chart

EURGBP - 18.08.2016

The EURGBP was quiet during yesterday’s trading sessions. As suggested in yesterday’s chart analysis, price continued to find support around the 23.6% Fib level and the longer-term moving average and has moved slightly higher. The bullish moving averages are tightening and could cross bearish in today’s trading sessions, suggesting that price could be bearish and continue to retrace the recent bullish move. Buying opportunities could exist around the longer-term moving average and around any of the key Fib levels.

As expected, the Bank of England have cut rates and have also increased their QE program. This has provided weakness for the GBP. Most experts believe that the GBP will continue to weaken long-term. The future of the Euro is very unclear at this point. UK Retail Sales data is set to be released at 0830 UTC today.

EURUSD – 1 Hour Chart

EURUSD - 18.08.2016

As suggested in yesterday’s chart analysis, price found support around the dynamic support of the shorter-term moving average and moved higher during yesterday’s trading sessions. The moving averages continue to be very bullish and are widening, suggesting that the upwards move could continue. Buying opportunities could exist around the trend support areas identified on the above chart and around the moving averages.

The future of the Euro is very unclear (not uncertain, just indecisive). As expected, the Fed hasn’t changed US rates but have kept them at the low rate of 0.50% – this has contributed to some weakness in the US Dollar.  US Manufacturing and Unemployment data is set to be released at 1230 UTC today.

GBPUSD – 1 Hour Chart

GBPUSD - 18.08.2016

As suggested in yesterday’s chart analysis, the GBPUSD found support around the shorter-term moving average, was bullish and stalled around the horizontal resistance at 1.3085. Price is now nearing the horizontal resistance again. The moving averages are bullish and are widening, suggesting that the bullish move could continue. Buying opportunities could exist if price moves above the horizontal resistance, around the trend support area and around the dynamic support of the moving averages.

The Bank of England have cut rates as expected and have also increased their QE program. This has provided weakness for the GBP. Most experts believe that the GBP will continue to weaken long-term, though recent very positive PPI CPI data has provided greater hope for the future of sterling. UK Retail Sales data is set to be released at 0830 UTC today. US Manufacturing and Unemployment data is set to be released at 1230 UTC today.

NZDUSD – 1 Hour Chart

NZDUSD - 18.08.2016

As suggested in yesterday’s chart analysis, the NZDUSD found support around the trend support area and has stalled around the horizontal resistance at 0.7300. The moving averages are bullish and are widening, suggesting that the bullish move could continue. Buying opportunities could exist if price moves above the horizontal resistance, around the dynamic support of the moving averages and around the trend support area.

Positive US Employment related data has given strength to the US Dollar. The economy of New Zealand continues to seem steady. As expected, the Reserve Bank of New Zealand have lowered the official rate to 2.00%. The NZD gained strength and continues to seem steady even with this potential weakening rate news. US Manufacturing and Unemployment data is set to be released at 1230 UTC today.

USDCAD – 1 Hour Chart

USDCAD - 18.08.2016

The USDCAD was bearish during yesterday’s trading sessions. The moving averages are bearish and are showing little sign of weakening, suggesting that the bearish move could continue. Selling opportunities could exist around the bearish moving averages and around the trend resistance area.

The Canadian Dollar continues to be weak as poor Canadian economic data is released. With a recent mix of positive and negative US economic data and with no clear direction on when the next US rate increase will be, the USD continues to be indecisive and a bit uncertain. US Manufacturing and Unemployment data is set to be released at 1230 UTC today.

USDCHF – 1 Hour Chart

.USDCHF - 18.08.2016

As suggested in yesterday’s chart analysis, the USDCHF found resistance around the dynamic resistance of the shorter-term moving average and moved lower during yesterday’s trading sessions. The moving averages continue to be bearish and are strongly widening, suggesting that price could continue to move lower. Selling opportunities could exist around the dynamic resistance of the moving averages.

With a recent mix of positive and negative US economic data and with no clear direction on when the next US rate increase will be, the USD continues to be indecisive and a bit uncertain. US Manufacturing and Unemployment data is set to be released at 1230 UTC today.

USDJPY – 1 Hour Chart

USDJPY - 18.08.2016

As suggested in yesterday’s chart analysis, the USDJPY reversed around the previous consolidation support area (and the longer-term moving average) and moved lower during yesterday’s trading sessions. The moving averages are bearish, suggesting that the downwards move could continue. Selling opportunities could exist around the trend resistance area and around the dynamic resistance of the moving averages.

With a recent mix of positive and negative US economic data and with no clear direction on when the next US rate increase will be, the USD continues to be indecisive and a bit uncertain. The recent Japanese Monetary Policy Statement and announcement from the BOJ has provided some strength to the Yen – most experts were expecting a greater stimulus package. US Manufacturing and Unemployment data is set to be released at 1230 UTC today.

XAUUSD – 1 Hour Chart

XAUUSD - 18.08.2016

As suggested in yesterday’s chart analysis (and for several days now), GOLD is consolidating and moving between a clear consolidation support and consolidation resistance. Price was rejected at the consolidation support during yesterday’s trading sessions and just recently bounced off the horizontal and consolidation resistance. Trading opportunities could exist around the consolidation support and resistance and if price moves out of the consolidation.