Intraday Forex Analysis – 1 Hour Charts – September 05, 2016


AUDUSD – 1 Hour Chart

AUDUSD - 05.09.2016

As suggested in Friday’s chart analysis, the moving averages crossed bullish and price moved higher during Friday’s trading sessions. As also suggested, price found support around the dynamic support of the moving averages. The AUDUSD is now nearing the trend resistance area and the bullish move could reverse bearish. The moving averages are very bullish though and are showing little sign of weakening, suggesting that the trend resistance may not hold. Buying opportunities could exist around the bullish moving averages and if price closes above the trend resistance area. Selling opportunities could exist if the trend resistance holds.

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 events today that will directly impact this currency pair. The US and Canada have a public holiday today, this may lower market volatility during today’s trading sessions.

EURGBP – 1 Hour Chart

EURGBP - 05.09.2016

The EURGBP continues to be very bearish and price continues to form lower lows. The moving averages are very bearish and are widening, suggesting that the bearish move could continue. Price action has formed a bearish tightening consolidation pattern. If price is bullish before attempting a move lower, selling opportunities could exist around the dynamic resistance of the moving averages and around the consolidation resistance area.

Very strong UK CPI data has cleared some doubt about the future of the British economy. Very strong manufacturing data has also been released. This is mainly due to the cheaper sterling boosting exports. 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. UK Services PMI is set to be released at 0830 UTC today. The US and Canada have a public holiday today, this may lower market volatility during today’s trading sessions.

EURUSD – 1 Hour Chart

EURUSD - 05.09.2016

As suggested in Friday’s chart analysis, the EURUSD reversed around the trend resistance area and move lower during Friday’s trading sessions. The EURUSD is now looking a little indecisive and is possibly consolidating between a tightening support and resistance. Trading opportunities could exist as price tests the consolidation support and resistance areas and as price moves out of the consolidation pattern. The moving averages have crossed strongly bullish, suggesting that an upside break could be more likely than a break to the downside.

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 events today that will directly impact this currency pair. The US and Canada have a public holiday today, this may lower market volatility during today’s trading sessions.

GBPUSD – 1 Hour Chart

GBPUSD - 05.09.2016

As suggested in Friday’s chart analysis, the GBPUSD found support around the previous horizontal resistance and was bullish during Friday’s trading sessions. The moving averages continue to be very bullish and are widening, suggesting that price could continue to it’s upwards direction. Buying opportunities could exist around the dynamic support of the moving averages and around the horizontal support at 1.3260.

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. Very strong manufacturing data has also been released. This is mainly due to the cheaper sterling boosting exports. 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. UK Services PMI is set to be released at 0830 UTC today. The US and Canada have a public holiday today, this may lower market volatility during today’s trading sessions.

NZDUSD – 1 Hour Chart

NZDUSD - 05.09.2016

As suggested in Friday’s chart analysis, the NZDUSD found support around the short-term moving average and was bullish during Friday’s trading sessions. The moving averages are very bullish and are widening, suggesting that price could continue to move higher. Buying opportunities could exist around the trend support area identified on the above chart and around the dynamic support of the moving averages. A bullish move could stall or reverse around the horizontal resistance. If price closes above the horizontal resistance at 0.7360, the market may present some buying opportunities and price could move higher.

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 events today that will directly impact this currency pair. The US and Canada have a public holiday today, this may lower market volatility during today’s trading sessions.

USDCAD – 1 Hour Chart

USDCAD - 05.09.2016

The USDCAD continues to retrace the recent bullish move and be very bearish. The moving averages have crossed bearish and are widening, suggesting that price could retrace further. Price is currently testing a previous horizontal resistance (now support) and trend support area. Buying opportunities could exist around these support areas. If price does manage to be bullish in today’s trading sessions, the move may stall or reverse around the dynamic resistance of the moving averages and around the short-term trend resistance area identified on the above chart.

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 events today that will directly impact this currency pair. The US and Canada have a public holiday today, this may lower market volatility during today’s trading sessions.

USDCHF – 1 Hour Chart

USDCHF - 05.09.2016

As suggested in Friday’s chart analysis, the USDCHF continued to be bearish and retrace during Friday’s trading sessions and found support around the 50.0% Fib level. The moving averages have crossed bearish and are widening, suggesting that the bearish move could continue. Buying opportunities could exist around the trend support area and around the 50.0% and 61.8% 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. There is no major scheduled news events today that will directly impact this currency pair. The US and Canada have a public holiday today, this may lower market volatility during today’s trading sessions.

USDJPY – 1 Hour Chart

USDJPY - 05.09.2016

As suggested in Friday’s chart analysis, the USDJPY found support around the channel support area and the bullish moving averages and moved higher during Friday’s trading sessions. As also suggested, price reversed bearish around the channel resistance area. Price has now closed below the channel support area and is looking bearish. The moving averages are still bullish but they are tightening, suggesting that buying momentum is weakening. From a technical view, there are very few areas that could provide trading opportunities during today’s trading sessions.

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 events today that will directly impact this currency pair. The US and Canada have a public holiday today, this may lower market volatility during today’s trading sessions.

XAUUSD – 1 Hour Chart

XAUUSD - 05.09.2016

GOLD has moved much higher and is looking very bullish. The moving averages are crossing bullish, suggesting that the upwards direction could continue. If price retraces during today’s trading sessions, buying opportunities could exist around the dynamic support of the bullish moving averages, around the horizontal resistance (now support) at 1315.25 and around the trend support area.