Intraday Forex Analysis – 1 Hour Charts – August 25, 2016

The AUDUSD – 1 Hour Chart

As suggested in yesterday’s chart analysis, the AUDUSD found resistance around the moving averages and initially moved lower during yesterday’s trading sessions. Price is now testing the consolidation resistance area. The moving averages have crossed bullish, suggesting that price may move above the resistance area and be bullish during today’s trading sessions. Buying opportunities could exist around the bullish moving averages, around the previous consolidation resistance area (as support) and around the newly formed 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. The Australian Dollar continues to be attractive to currency investors due to the yield on carry trades. US Unemployment Claims and Core Durable Goods data is set to be released at 1230 UTC today.

EURGBP – 1 Hour Chart

As suggested in yesterday’s chart analysis, the channel support area did not hold and the EURGBP was bearish during yesterday’s trading sessions. The moving averages continue to be very bearish and are widening, suggesting that price could continue it’s bearish direction. Selling opportunities could exist around the dynamic resistance of the moving averages and around the previous channel support (now resistance) area.

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. German Ifo Business Climate data is set to be released at 0800 UTC today.

EURUSD – 1 Hour Chart

The EURUSD moved below the consolidation support area and was bearish during yesterday’s trading sessions. The moving averages are bearish and are widening, suggesting that the downwards price direction could continue. Selling opportunities could exist around the dynamic resistance of the moving averages and around the previous consolidation support  and resistance areas. A bearish move could stall or reverse around the horizontal support at 1.1245.

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. German Ifo Business Climate data is set to be released at 0800 UTC today. US Unemployment Claims and Core Durable Goods data is set to be released at 1230 UTC.

GBPUSD – 1 Hour Chart

The GBPUSD continues to be bullish and forming clear higher highs and higher lows. The moving averages are bullish and are widening, suggesting that the uptrend could continue. Buying opportunities could exist around the dynamic support of the moving averages and around the trend support area.

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 Unemployment Claims and Core Durable Goods data is set to be released at 1230 UTC today.

NZDUSD – 1 Hour Chart

As suggested in yesterday’s chart analysis, the NZDUSD found support around the dynamic support of the moving averages and was bullish during yesterday’s trading sessions. As also suggested, price is stalling around the trend resistance area. The moving averages continue to be bullish and are showing little sign of weakening, suggesting that price could still move higher. Buying opportunities could exist around the various diagonal support areas identified on the above chart, around the dynamic support of the moving averages and if price moves above the horizontal resistance at 0.7335. A bullish move could stall or reverse around the horizontal resistance and 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 Unemployment Claims and Core Durable Goods data is set to be released at 1230 UTC today.

USDCAD – 1 Hour Chart

The USDCAD is consolidating and is currently testing the consolidation support and dynamic support of the moving averages. The moving averages are bullish but are tightening, providing no clear short-term direction. Trading opportunities could exist as price moves out of the consolidation (break-out trade). If price breaks to the upside and rallies, the bullish move could stall or reverse around the 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 Unemployment Claims and Core Durable Goods data is set to be released at 1230 UTC today.

USDCHF – 1 Hour Chart

As suggested in yesterday’s chart analysis, the USDCHF found support around the shorter-term moving average and moved higher during yesterday’s trading sessions. Price is now retracing some of the recent bullish move and is nearing a strong support area. Buying opportunities could exist around the previous horizontal resistance (now support), around the trend support area and around the dynamic support of the moving averages. A bullish move could stall or reverse around the horizontal resistance at 0.9710.

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 Unemployment Claims and Core Durable Goods data is set to be released at 1230 UTC today.

USDJPY – 1 Hour Chart

As mentioned in yesterday’s chart analysis, the USDJPY continues to consolidate and is currently coming off the consolidation resistance area. The moving averages are indecisive and providing no clear direction, confirming that the consolidation is taking place. Trading opportunities could exist as price moves out of the consolidation (break-out trade).

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 Unemployment Claims and Core Durable Goods data is set to be released at 1230 UTC today.

XAUUSD – 1 Hour Chart

As suggested in yesterday’s chart analysis, GOLD closed below the consolidation support area and moved lower during yesterday’s trading sessions. If price is initially bullish during today’s trading sessions, selling opportunities could exist around the previous consolidation support area (now resistance), around the bearish moving averages and around the trend resistance area.

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