Intraday Forex Analysis – 1 Hour Charts – August 24, 2016

The AUDUSD – 1 Hour Chart

As suggested in yesterday’s chart analysis, the AUDUSD found resistance around the trend/consolidation resistance area and moved lower during yesterday’s trading sessions. The moving averages are bearish but are beginning to tighten, suggesting that price may struggle to reach the consolidation support area. Selling opportunities could exist around the dynamic resistance of the moving averages and around the consolidation resistance 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. The Australian Dollar continues to be attractive to currency investors due to the yield on carry trades. US Crude Oil Inventories data is set to be released at 1430 UTC today.

EURGBP – 1 Hour Chart

The EURGBP was bearish during yesterday’s trading sessions (as suggested in yesterday’s trading analysis). Price is now at a potential support area but the moving averages are bearish and are widening, suggesting that the support may not hold and that price could continue to move lower during today’s trading sessions. If the EURGBP is initially bullish before continuing the potential bearish move, selling opportunities could exist around the dynamic resistance of the moving averages and around the channel/trend resistance areas.

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

As suggested in yesterday’s chart analysis, the EURUSD attempting a swing higher during yesterday’s trading sessions but the attempt failed and price reversed bearish. The moving averages have crossed bearish, suggesting that the downwards move could continue. Selling opportunities could exist around the dynamic resistance of the moving averages. A bearish move may stall or reverse around the potential consolidation support area. There is also a possibility that price could stay within the consolidation and move between the consolidation support and resistance areas.

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 Crude Oil Inventories data is set to be released at 1430 UTC today.

GBPUSD – 1 Hour Chart

The bullish move stalled around the consolidation resistance during yesterday’s trading sessions and is now coming off the resistance area. The moving averages are bullish though and are still widening, suggesting that price could still move higher. Buying opportunities could exist around the bullish moving averages and around the consolidation support area. Price could continue to stall around the consolidation resistance.

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. US Crude Oil Inventories data is set to be released at 1430 UTC today.

NZDUSD – 1 Hour Chart

The NZDUSD was very bearish during yesterday’s trading sessions but price is currently finding support around the moving averages. The moving averages are bullish and are widening, suggesting that price could move higher in today’s trading sessions. Buying opportunities could exist around the dynamic support of the moving averages and around the trend support area. A bullish move could stall or reverse around the trend resistance 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 lowered the official rate to 2.00%. The NZD gained strength and continues to seem steady even with this potential weakening rate news. The New Zealand Dollar continues to be attractive to currency investors due to the yield on carry trades. US Crude Oil Inventories data is set to be released at 1430 UTC today.

USDCAD – 1 Hour Chart

As suggested in yesterday’s chart analysis, the USDCAD found support around the longer-term moving average and identified support area and is completing the 2nd shoulder of an inverted head and shoulder pattern. The moving averages are bullish and are widening, suggesting that price could continue to move higher. Buying opportunities could exist around the dynamic support of the moving averages and around the trend support area. The bullish move could stall or reverse around the previous horizontal support (now 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. US Crude Oil Inventories data is set to be released at 1430 UTC today.

USDCHF – 1 Hour Chart

As suggested in yesterday’s chart analysis, the USDCHF found support around the moving averages and is now completing the 2nd shoulder of the inverted head and shoulder pattern. The bullish moving averages are tightening ever-so slightly, suggesting that the bullish move may struggle around the horizontal resistance at the 0.9545 area. Buying opportunities could exist as price moves above the horizontal resistance area, around the bullish moving averages and around the trend support 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. US Crude Oil Inventories data is set to be released at 1430 UTC today.

USDJPY – 1 Hour Chart

The USDJPY continues to consolidate. The moving averages confirm the indecision – they are lacking direction. Trading opportunities could exist around the consolidation support and resistance areas and if price moves out of the consolidation pattern.

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 Crude Oil Inventories data is set to be released at 1430 UTC today.

XAUUSD – 1 Hour Chart

As suggested in yesterday’s chart analysis, GOLD found resistance around the longer-term moving average and became bearish during yesterday’s trading sessions. Price continues to consolidate though and the market is lacking clear direction. Trading opportunities could exist around the identified support and resistance areas on the above chart. Selling opportunities could exist if price moves below the consolidation support area.

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