Intraday Forex Analysis – 1 Hour Charts – August 31, 2016


AUDUSD – 1 Hour Chart

AUDUSD - 31.08.2016

As suggested in yesterday’s chart analysis, the AUDUSD was bearish during yesterday’s trading sessions and reversed around the trend support area. The moving averages continue to be bearish and are showing little sign of weakening, suggesting that price could yet move lower. If price is bullish before attempting another move lower, selling opportunities could exist around the dynamic resistance of the moving averages. A bearish move may stall or reverse again around the trend support area (identified on the above chart).

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. US Non-Farm Employment Change data is set to be released at 1215 UTC today. This is followed by US Crude Oil Inventories at 1430 UTC. Australian Private Capital Expenditure and Retail Sales data will be released overnight at 0130 UTC.

EURGBP – 1 Hour Chart

EURGBP - 31.08.2016

As suggested in yesterday’s chart analysis, price closed out of the consolidation and moved much lower during yesterday’s trading sessions. The moving averages have crossed bearish and are widening, suggesting that price could move lower in today’s trading sessions. Price has also formed a downwards channel. Selling opportunities could exist around the bearish moving averages and around the channel resistance area. A bearish move could stall or reverse around the channel support area. If price breaks to the upside and is bullish in today’s trading sessions, the EURGBP could stall or reverse around the horizontal resistance at 0.8560.

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 - 31.08.2016

The EURUSD continued it’s bearish move during yesterday’s trading sessions. The moving averages are bearish and continue to widen, suggesting that the downwards price direction could continue. Price has formed a tight downwards channel and is currently moving between the channel support and resistance. Selling opportunities could exist around the tight channel resistance and around the dynamic resistance of the moving averages.

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. US Non-Farm Employment Change data is set to be released at 1215 UTC today. This is followed by US Crude Oil Inventories at 1430 UTC.

GBPUSD – 1 Hour Chart

GBPUSD - 31.08.2016

Price is moving sideways and has formed a range. The overall trend (on the 1 hour chart) is up but the moving averages are very bearish, signalling some indecision and a lack of market direction. Trading opportunities could exist as price closes out of the range consolidation. If price breaks to the upside, a bullish move may stall or reverse around the diagonal resistance identified on the above chart and around the horizontal support now resistance at 1.3165.

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. US Non-Farm Employment Change data is set to be released at 1215 UTC today. This is followed by US Crude Oil Inventories at 1430 UTC.

NZDUSD – 1 Hour Chart

NZDUSD - 31.08.2016

As suggested in yesterday’s chart analysis, the NZDUSD was bearish during yesterday’s trading sessions and reversed around the horizontal support area. The moving averages are bearish but are tightening, suggesting that price could attempt a bullish move in today’s trading sessions. Buying opportunities could exist around the horizontal support at 0.7210. If price moves and closes below the horizontal support area, price could move much lower.

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. US Non-Farm Employment Change data is set to be released at 1215 UTC today. This is followed by US Crude Oil Inventories at 1430 UTC.

USDCAD – 1 Hour Chart

 

USDCAD - 31.08.2016

The USDCAD continues to be very bullish. The moving averages are bullish and are widening, suggesting that the upside move could continue. From a technical view, there are very few areas that could provide trading opportunities. If price starts to retrace during today’s trading sessions, buying opportunities could exist around the bullish moving averages and around any of the key Fib levels.

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. US Non-Farm Employment Change data is set to be released at 1215 UTC today. This is followed by a Canadian GDP release at 1230 UTC. US Crude Oil Inventories data is set to be released at 1430 UTC.

USDCHF – 1 Hour Chart

USDCHF - 31.08.2016

The USDCHF continues to be very bullish. The moving averages are bullish and are widening, suggesting that the upside move could continue. From a technical view, there are very few areas that could provide trading opportunities. If price starts to retrace during today’s trading sessions, buying opportunities could exist around the bullish moving averages and around any of the key Fib levels.

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. US Non-Farm Employment Change data is set to be released at 1215 UTC today. This is followed by US Crude Oil Inventories at 1430 UTC.

USDJPY – 1 Hour Chart

USDJPY - 31.08.2016

The USDJPY continues to be very bullish. The moving averages are bullish and are widening, suggesting that the upside move could continue. From a technical view, there are very few areas that could provide trading opportunities. If price starts to retrace during today’s trading sessions, buying opportunities could exist around the dynamic support of the shorter-term moving average.

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. US Non-Farm Employment Change data is set to be released at 1215 UTC today. This is followed by US Crude Oil Inventories at 1430 UTC.

XAUUSD – 1 Hour Chart

GOLD - 31.08.2016

GOLD continues to be very bearish but the bearish moving averages are starting to weaken, suggesting that price could attempt a bullish move in today’s trading sessions. Selling opportunities could exist as the dynamic resistance of the moving averages is tested, around the trend/consolidation resistance area and if price closes below the trend/consolidation support area. Buying opportunities could exist if price closes above the trend/consolidation resistance.