Intraday Forex Analysis – 1 Hour Charts – October 18, 2016


AUDUSD – 1 Hour Chart

audusd-18-10-2016

As suggested in yesterday’s chart analysis, price found support around the previous horizontal resistance area and the shorter-term moving average and was bullish during yesterday’s trading sessions. The moving averages are bullish and are widening, suggesting that price may move higher. Buying opportunities could exist around the dynamic support of the moving averages, around the trend support area and around the previous horizontal resistance (now support) at 0.7640.

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 CPI data is set to be released at 1230 UTC today.

EURGBP – 1 Hour Chart

eurgbp-18-10-2016

The EURGBP continues to range, as mentioned in yesterday’s chart analysis. Price is moving between the horizontal support at 0.8980 and the horizontal resistance at 0.9055. The moving averages confirm the lack of market direction – they are crossing frequently and moving sideways. Trading opportunities could exist around the range support and resistance levels and if price moves out of the range (break-out trade).

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. UK CPI data is set to be released at 0830 UTC today.

EURUSD – 1 Hour Chart

eurusd-18-10-2016

As suggested in yesterday’s chart analysis, the EURUSD has started retracing some of the recent bearish move and has been bullish. The bearish moving averages are starting to widen again, suggesting that price may move lower. Price is above the moving averages though, suggesting that selling momentum is currently weak. Selling opportunities could exist around the diagonal resistance area and other resistance areas identified on the above chart.

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 CPI data is set to be released at 1230 UTC today.

GBPUSD – 1 Hour Chart

gbpusd-18-10-2016

The GBPUSD continues to range, as mentioned in yesterday’s chart analysis. Price is moving between the horizontal support at 1.2150 and the horizontal resistance at 1.2260. The moving averages confirm the lack of market direction – they are moving sideways and are tight. Trading opportunities could exist around the range support and resistance levels and if price moves out of the range (break-out trade).

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. UK CPI data is set to be released at 0830 UTC today. This will be followed by US CPI data at 1230 UTC.

NZDUSD – 1 Hour Chart

nzdusd-1h-ta

As suggested in yesterday’s chart analysis, price has been bullish and has moved much higher since closing above the horizontal resistance at 0.7120. The moving averages are bullish and are showing little sign of weakening, suggesting that price may move higher. Buying opportunities could exist if price closes above the horizontal resistance at 0.7185, around the dynamic support of the moving averages, around the trend support area and around the other support areas identified on the above chart.

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 CPI data is set to be released at 1230 UTC today.

USDCAD – 1 Hour Chart

usdcad-18-10-2016

Price continues to look choppy and indecisive. The moving averages now have some direction though – they have crossed bearish and are widening, suggesting that price could move lower. Selling opportunities could exist around the previous horizontal support at 1.3110 and around the dynamic resistance of the moving averages.

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 CPI data is set to be released at 1230 UTC today. Canadian Manufacturing Sales data will be released at the same time.

USDCHF – 1 Hour Chart

usdchf-18-10-2016

As suggested in yesterday’s chart analysis, the horizontal resistance at 0.9900 has held and price has since been bearish. Price action suggests that the USDCHF is now ranging between the identified horizontal support and resistance on the above chart. The moving averages confirm this – they are crossing frequently and are moving sideways. Trading opportunities could exist around the range support and resistance levels and if price moves out of the range (break-out trade).

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 CPI data is set to be released at 1230 UTC today.

USDJPY – 1 Hour Chart

usdjpy-18-10-2016

The USDJPY is consolidating and moving between a number of support and resistance areas. The moving averages are bullish though, suggesting that price may move to the upside. Trading opportunities could exist around any of the identified support and resistance areas on the above chart.

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 CPI data is set to be released at 1230 UTC today.

XAUUSD – 1 Hour Chart

gold-18-10-2016

Price continued to consolidate and move sideways during yesterday’s trading sessions. The moving averages confirm the lack of price direction – they are moving sideways and crossing frequently. Trading opportunities could exist around the range support and resistance levels and if price moves out of the range (break-out trade).