Intraday Forex Analysis – 1 Hour Charts – August 29, 2016


AUDUSD – 1 Hour Chart

AUDUSD - 29.08.2016

The AUDUSD was very bearish during Friday’s trading sessions. Price has found support around the trend support area and is currently moving off that area. The moving averages are bearish though and are widening, suggesting that the downwards direction could continue. If price is bullish before moving lower, selling opportunities could exist around the dynamic resistance of the moving averages and around the previous trend support (now resistance). A selling opportunity could also exist if price moves below 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.The Australian Dollar continues to be attractive to currency investors due to the yield on carry trades. US Fed Chair Yellen recently suggested that there could be a US rate hike before the end of this year. This has given great strength to the US Dollar. There is no major scheduled news today that will directly impact this pair.

EURGBP – 1 Hour Chart

EURGBP - 29.08.2016

As suggested in Friday’s chart analysis, the EURGBP found resistance around the longer-term moving average and moved lower during Friday’s trading sessions. The moving averages are bearish but are tightening and becoming more bullish, suggesting that price could move higher during today’s trading sessions. Buying opportunities could exist as price closes above the resistance areas identified on the above chart. Selling opportunities could exist if the dynamic resistance of the moving averages holds and around the 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

EURUSD - 29.08.2016

As suggested in Friday’s chart analysis, the EURUSD found resistance around the previous consolidation support area and was very bearish during Friday’s trading sessions. The moving averages are bearish and are showing little sign of weakening, suggesting that price could still move lower. If price is bullish before moving lower, selling opportunities could exist around the dynamic resistance of the moving averages, around the horizontal support (now resistance) at 1.1245 and around the trend resistance area.

The future of the Euro is very unclear (not uncertain, just indecisive). US Fed Chair Yellen recently suggested that there could be a US rate hike before the end of this year. This has given great strength to the US Dollar. There is no major scheduled news today that will directly impact this pair.

GBPUSD – 1 Hour Chart

GBPUSD - 29.08.2016

The GBPUSD was very bearish during Friday’s trading sessions. The moving averages have crossed bearish and are widening, suggesting that price could continue to move lower. If price moves higher before moving lower, selling opportunities could exist around the dynamic resistance of the moving averages, around the previous horizontal support (now resistance) at 1.3170 and around the trend resistance area.

The Bank of England have cut rates as expected and have also increased their QE program. This initially caused weakness for the GBP but very strong UK CPI data has cleared some doubt about the future of the British economy. Most experts still believe that the GBP will continue to weaken long-term though. US Fed Chair Yellen recently suggested that there could be a US rate hike before the end of this year. This has given great strength to the US Dollar. There is no major scheduled news today that will directly impact this pair.

NZDUSD – 1 Hour Chart

NZDUSD - 29.08.2016

As suggested in Friday’s chart analysis, price reversed around the trend resistance area and was bearish during Friday’s trading sessions. Price has since found support around the horizontal support at 0.7210 and is retracing some of the recent bearish move. The moving averages have crossed bearish and are widening, suggesting that price could continue to move lower. Selling opportunities could exist around the previous trend support area (now resistance) and around the bearish moving averages. A bearish move could stall or reverse around the horizontal support area at 0.7210.

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 recently suggested that there could be a US rate hike before the end of this year. This has given great strength to the US Dollar. There is no major scheduled news today that will directly impact this pair.

USDCAD – 1 Hour Chart

USDCAD - 29.08.2016

The USDCAD moved much higher during Friday’s trading sessions. The moving averages have crossed bullish and are widening, suggesting that the bullish move could continue. If price retraces some of the recent bullish move and pulls back, buying opportunities could exist around the dynamic support of the moving averages and around the previous horizontal resistance (now support) at 1.2960.

US Fed Chair Yellen recently suggested that there could be a US rate hike before the end of this year. This has given great strength to the US Dollar. There is no major scheduled news today that will directly impact this pair.

USDCHF – 1 Hour Chart

USDCHF - 29.08.2016

As suggested in Friday’s chart analysis, the USDCHF found support around the longer-term moving average and the trend support area during Friday’s trading sessions. The moving averages continue to be very bullish and are showing little sign of weakening, suggesting that price could move higher. Price is looking a little over-extended though and may start retracing.

US Fed Chair Yellen recently suggested that there could be a US rate hike before the end of this year. This has given great strength to the US Dollar. There is no major scheduled news today that will directly impact this pair.

USDJPY – 1 Hour Chart

USDJPY - 29.08.2016

As mentioned in Friday’s chart analysis, the USDJPY moved out of the consolidation pattern and moved much higher during Friday’s trading sessions. The moving averages are bullish and price continues to be very bullish. From a technical view, there are very few areas providing trading opportunities.

The most recent Japanese Monetary Policy Statement and announcement from the BOJ has provided some strength to the Yen – most experts were expecting a much greater stimulus package. US Fed Chair Yellen recently suggested that there could be a US rate hike before the end of this year. This has given great strength to the US Dollar. There is no major scheduled news today that will directly impact this pair.

XAUUSD – 1 Hour Chart

GOLD - 29.08.2016

As suggested in Friday’s chart analysis, price reversed around the previous consolidation support area (and the longer-term moving average) and was bearish during Friday’s trading sessions. The moving averages continue to be bearish and are showing little sign of weakening, suggesting that price could still move lower. If price moves higher before moving lower, selling opportunities could exist around the dynamic resistance of the moving averages, around the trend resistance area and around the previous consolidation support.