Intraday Forex Analysis – 1 Hour Charts – October 12, 2016

AUDUSD – 1 Hour Chart

As suggested in yesterday’s chart analysis, the AUDUSD found support around the bearish consolidation support area and moved higher during yesterday’s trading sessions. The moving averages continue to bearish and price is around the consolidation resistance area, suggesting that price could move lower during today’s trading sessions. Selling opportunities could exist around the moving averages and around the consolidation resistance. A bearish move may stall or reverse around the consolidation support.

The Bank of Australia have again decided to hold rates at the low of 1.50%.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. Though recent US economic news has been disappointing and the Presidential election nears, shedding some doubt on a rate hike being sooner rather than later. Most economists believe that a US rate hike could happen in December. US FOMC Meeting Minutes will be released at 1800 UTC today.

EURGBP – 1 Hour Chart

As suggested in yesterday’s chart analysis, price found support around the shorter-term moving average and moved higher. As also suggested, the EURGBP is now retracing and has been bearish. The moving averages are tightening and becoming more bearish, suggesting that price could retrace further. Buying opportunities could exist around the dynamic support of the longer-term moving average and around the 50.0% and 61.8% Fib levels.

The British Prime Minister has announced that Article 50 will be triggered by the end of March 2017. This has caused a sterling sell-off as the 2 year of negotiations for leaving the EU nears. Most economists believe that sterling will continue to weaken long-term. There is no major scheduled news today that will directly impact this pair.

EURUSD – 1 Hour Chart

The EURUSD was very bearish during yesterday’s trading sessions. The moving averages are bearish and are widening, suggesting that price could move lower. If price pulls back during today’s trading sessions, selling opportunities could exist around the dynamic resistance of the moving averages and around the previous channel support area (now resistance).

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. Though recent US economic news has been disappointing and the Presidential election nears, shedding some doubt on a rate hike being sooner rather than later. Most economists believe that a US rate hike could happen in December. US FOMC Meeting Minutes will be released at 1800 UTC today.

GBPUSD – 1 Hour Chart

As suggested in yesterday’s chart analysis, price moved below the clear horizontal support area and was very bearish. The moving averages are bearish, suggesting that price could move lower. Selling opportunities could exist around the previous horizontal support (now resistance) at 1.2310 and around the dynamic resistance of the moving averages.

The British Prime Minister has announced that Article 50 will be triggered by the end of March 2017. This has caused a sterling sell-off as the 2 year of negotiations for leaving the EU nears. Most economists believe that sterling will continue to weaken long-term. US Fed Chair Yellen recently suggested that there could be a US rate hike before the end of this year. Though recent US economic news has been disappointing and the Presidential election nears, shedding some doubt on a rate hike being sooner rather than later. Most economists believe that a US rate hike could happen in December. US FOMC Meeting Minutes will be released at 1800 UTC today.

NZDUSD – 1 Hour Chart

The NZDUSD retraced slightly but reversed around the shorter-term moving average and the trend resistance area (as suggested in yesterday’s chart analysis). The moving averages continue to be bearish, suggesting that price could move lower. Selling opportunities could exist around the dynamic resistance of the moving averages and around the trend resistance area.

New Zealand’s economy continues to seem steady. As expected, the Reserve Bank of New Zealand have held rates at 2.00%. The NZD continues to seem steady and is one of the stronger currencies. 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. Though recent US economic news has been disappointing and the Presidential election nears, shedding some doubt on a rate hike being sooner rather than later. Most economists believe that a US rate hike could happen in December. US FOMC Meeting Minutes will be released at 1800 UTC today.

USDCAD – 1 Hour Chart

The USDCAD is looking choppy and a little indecisive. Price has formed a potential bearish channel though and the moving averages have crossed bearish, suggesting that price may move lower. Selling opportunities could exist around the channel resistance area.

US Fed Chair Yellen recently suggested that there could be a US rate hike before the end of this year. Most economists believe that a US rate hike could happen in December. Recent Canadian economic figures have been very positive and the recent appreciation in OIL has given added strength to the Canadian Dollar. US FOMC Meeting Minutes will be released at 1800 UTC today.

USDCHF – 1 Hour Chart

As suggested in yesterday’s chart analysis, price has moved above the horizontal resistance at 0.9835 and has rallied higher. The moving averages are bullish and are widening, suggesting that price could move higher. Buying opportunities could exist around the dynamic support of the moving averages and around the previous horizontal resistance – as support – at 0.9835.

US Fed Chair Yellen recently suggested that there could be a US rate hike before the end of this year. Though recent US economic news has been disappointing and the Presidential election nears, shedding some doubt on a rate hike being sooner rather than later. Most economists believe that a US rate hike could happen in December. US FOMC Meeting Minutes will be released at 1800 UTC today.

USDJPY – 1 Hour Chart

Price action has formed a double-top – as suggested in yesterday’s chart analysis. The moving averages are crossing frequently, suggesting that price has become indecisive and could lack direction. Selling opportunities could exist around the diagonal resistance area creating by the double-top price pattern.

The Bank of Japan have announced a slight hike in their rate, from -0.20% to -0.10%. US Fed Chair Yellen recently suggested that there could be a US rate hike before the end of this year. Though recent US economic news has been disappointing and the Presidential election nears, shedding some doubt on a rate hike being sooner rather than later. Most economists believe that a US rate hike could happen in December. US FOMC Meeting Minutes will be released at 1800 UTC today.

XAUUSD – 1 Hour Chart

GOLD moved sideways during yesterday’s trading sessions. The moving averages confirm the lack of momentum – that are very tight and also moving sideways. Trading opportunities could exist around the identified resistance areas on the above chart and around the moving averages.

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