Intraday Forex Analysis – 1 Hour Charts – August 26, 2016

AUDUSD – 1 Hour Chart

As suggested in yesterday’s chart analysis, the AUDUSD found support around the newly formed support area and was bullish during yesterday’s trading sessions. Price has moved above the consolidation resistance area, suggesting that price could continue to move higher. The moving averages are very indecisive though and are providing no clear market direction. Buying opportunities could exist around the dynamic support of the moving averages and around the previous 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 Fed Chair Yellen is set to speak at 1400 UTC today. If anything is said that suggests a change in interest rates in the near future, US pairs may become very volatile.

EURGBP – 1 Hour Chart

The EURGBP was very bullish during yesterday’s trading sessions as it retraced some of the recent bearish move. The moving averages are bearish and continue to be wide, suggesting that the overall downwards direction could continue. Selling opportunities could exist around the dynamic resistance of the longer-term moving average and around the trend resistance area. A bearish move is likely to stall or reverse around the trend support area identified on the above chart.

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. A second estimate on UK GDP is set to be released at 0800 UTC today.

EURUSD – 1 Hour Chart

The EURUSD was bullish during yesterday’s trading sessions. As suggested in yesterday’s chart analysis, price reversed around the previous consolidation support area and is now moving sideways. The moving averages are bearish and are widening, suggesting that price could be bearish in today’s trading sessions. Selling opportunities could exist around the previous consolidation support and resistance areas and around the dynamic resistance of the longer-term moving average. A bearish move could stall or reverse around the horizontal support at 1.1245. If price is bullish in today’s trading sessions and closes above the previous consolidation resistance area, we could see price rally and swing higher.

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 Fed Chair Yellen is set to speak at 1400 UTC today. If anything is said that suggests a change in interest rates in the near future, US pairs may become very volatile.

GBPUSD – 1 Hour Chart

The GBPUSD was bearish during yesterday’s trading sessions. As suggested in yesterday’s chart analysis though, price has found support around the trend support area and around the longer-term moving average. Buying opportunities could exist if the trend support area and longer-term moving average are tested again. A bullish move is likely to stall or reverse around the trend resistance area. If price is bearish in today’s trading sessions and closes below the trend support area, the GBPUSD may move much lower.

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. A second estimate on UK GDP is set to be released at 0800 UTC today. US Fed Chair Yellen is set to speak at 1400 UTC. If anything is said that suggests a change in interest rates in the near future, US pairs may become very volatile.

NZDUSD – 1 Hour Chart

The NZDUSD is currently moving within a tightening consolidation pattern. The moving averages are bullish and are showing little sign of weakening, suggesting that price could break to the upside of the consolidation. If price is bullish in today’s trading sessions, price could stall or reverse around the horizontal resistance at 0.7335 and around the trend resistance area. Trading opportunities could exist off the consolidation support and resistance, if price continues to move within the consolidation pattern.

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 Fed Chair Yellen is set to speak at 1400 UTC today. If anything is said that suggests a change in interest rates in the near future, US pairs may become very volatile.

USDCAD – 1 Hour Chart

The USDCAD was slightly bearish during yesterday’s trading sessions. Price has formed a trend resistance area and the moving averages are about to cross bearish, suggesting that the downwards price action could continue. Selling opportunities could exist around the dynamic resistance of the moving averages and around the trend resistance area. If price is bullish in today’s trading sessions and closes above the trend resistance area, price could start a longer-term uptrend.

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 Fed Chair Yellen is set to speak at 1400 UTC today. If anything is said that suggests a change in interest rates in the near future, US pairs may become very volatile.

USDCHF – 1 Hour Chart

As suggested in yesterday’s chart analysis, the USDCHF found support around the previous horizontal resistance area and around the shorter-term moving average and moved higher during yesterday’s trading sessions. The moving averages are still bullish and are showing no sign of weakening, suggesting that price could still move higher. Buying opportunities could exist around the longer-term moving average 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 Fed Chair Yellen is set to speak at 1400 UTC today. If anything is said that suggests a change in interest rates in the near future, US pairs may become very volatile.

USDJPY – 1 Hour Chart

As mentioned in a few posts now, the USDJPY continues to move within a tightening consolidation pattern. The moving averages continue to cross frequently and are providing no clear direction. A breakout is almost imminent. Trading opportunities could exist as price moves out of the consolidation. A bearish breakout and sell-off could stall or reverse around the horizontal support at 99.70.

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 Fed Chair Yellen is set to speak at 1400 UTC today. If anything is said that suggests a change in interest rates in the near future, US pairs may become very volatile.

XAUUSD – 1 Hour Chart

Price is clearly down-trending and has formed clear lower highs and lower lows. The moving averages are very bearish and are widening, suggesting that price could still trend lower. If price is initially bullish in today’s trading sessions, selling opportunities could exist around the dynamic resistance of the moving averages, around the trend resistance area and around the previous consolidation support area.

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