Intraday Forex Analysis – 1 Hour Charts – August 23, 2016

AUDUSD – 1 Hour Chart

The AUDUSD was bullish during yesterday’s trading sessions. Price is now being rejected around the trend resistance area and the longer-term moving average. The moving averages continue to be bearish but are starting to tighten slightly. Selling opportunities could exist around the trend resistance area and around the dynamic resistance of the longer-term moving average. 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. There is no major scheduled news today that will directly impact this pair.

EURGBP – 1 Hour Chart

The EURGBP was bearish during yesterday’s trading sessions. The moving averages continue to be bearish and price has now moved back below the moving averages, suggesting that the downwards move could continue. Selling opportunities could exist around the dynamic resistance of the moving averages, around the trend resistance area and around the previous channel support (now resistance).

Very strong UK CPI data has cleared some doubt about the future of the British economy. Though leaving the EU looms, the GBP has been gaining back some ground but most experts believe that the GBP will continue to weaken long-term. The future of the Euro is very unclear at this point. There is no major scheduled news today that will directly impact this pair.

EURUSD – 1 Hour Chart

Price is currently attempting a new swing higher. The moving averages are bullish but are tightening, suggesting that the bullish swing higher may fail or move lower before moving higher. Buying opportunities could exist around the dynamic support of the moving averages and around the trend support area.

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.  There is no major scheduled news today that will directly impact this pair.

GBPUSD – 1 Hour Chart

The GBPUSD continues to be bullish and is currently testing the diagonal resistance area. The bullish moving averages are tight, suggesting that price could move off the trend resistance area. If price moves lower in today’s trading sessions, buying opportunities could exist around the dynamic support of the moving averages. A bullish move is likely to stall or reverse around the diagonal resistance identified on the above chart.

The Bank of England have cut rates as expected and have also increased their QE program. This initially caused weakness for the GBP. Very strong UK CPI data has cleared some doubt about the future of the British economy but most experts believe that the GBP will continue to weaken long-term. Though leaving the EU looms, the GBP has been gaining back ground but most experts believe that the GBP will continue to weaken long-term. There is no major scheduled news today that will directly impact this pair.

NZDUSD – 1 Hour Chart

Price has moved above the horizontal resistance area and is currently moving higher. The moving averages have just crossed bullish, suggesting that the bullish move could continue. If price is bearish in today’s trading sessions, buying opportunities could exist around the previous horizontal resistance area (now support) and around the dynamic support of the moving averages.

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 lowered the official rate to 2.00%. The NZD gained strength and continues to seem steady even with this potential weakening rate news. There is no major scheduled news today that will directly impact this pair.

USDCAD – 1 Hour Chart

The USDCAD initially stalled around the 38.2% Fib level before moving higher during yesterday’s trading sessions. Price is now forming the potential 2nd shoulder of an inverted head and shoulder pattern and finding support around the shorter-term moving average. Buying opportunities could exist around the moving averages and as price continues to form the inverted head and shoulder pattern. If the inverted head and shoulder holds, price may rally to the horizontal resistance at 1.3000.

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 uncertain. There is no major scheduled news today that will directly impact this pair.

USDCHF – 1 Hour Chart

The USDCHF reversed around the 38.2% Fib level during yesterday’s trading sessions. Price is now forming the potential 2nd shoulder of a inverted head and shoulder pattern. Price has moved below the moving averages but the moving averages have crossed bullish, suggesting that price could move higher and complete the inverted head and shoulder pattern. A bullish move could stall or reverse around the 38.2% and 50.0% Fib levels.

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. There is no major scheduled news today that will directly impact this pair.

USDJPY – 1 Hour Chart

Price is forming a tightening consolidation pattern and is lacking clear market direction. The moving averages confirm this, they have crossed a few times in the last couple of days and are indecisive. Buying opportunities could exist around the consolidation support area and selling opportunities could exist around the consolidation resistance area.

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. There is no major scheduled news today that will directly impact this pair.

XAUUSD – 1 Hour Chart

Despite GOLD moving below the recent consolidation pattern, price is consolidating again and is still lacking market direction. The moving averages are bearish though and continue to widen, suggesting that price could move lower in today’s trading sessions. Selling opportunities could exist around the dynamic resistance of the moving averages and as price moves below the consolidation support area.

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