Intraday Forex Analysis – 1 Hour Charts – October 19, 2016


AUDUSD – 1 Hour Chart

audusd-19-10-2016

The AUDUSD had little direction during yesterday’s trading sessions – price was choppy and moved in a general sideways direction. The moving averages continue to be bullish, suggesting that price could move higher. Buying opportunities could exist around the bullish moving averages, around the trend support area, around the horizontal support levels and if price moves above the horizontal resistance at 0.7690.

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 Building Permits data is set to be released at 1230 UTC today. This is followed by US Crude Oil Inventories at 1430 UTC.

EURGBP – 1 Hour Chart

eurgbp-19-10-2016

As suggested in yesterday’s chart analysis, price has moved below the range support and has been bearish. The moving averages have crossed bearish and are widening, suggesting that price may move lower. Selling opportunities could exist around the dynamic resistance of the moving averages and around the previous horizontal support (now resistance) at 0.8970.

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 Average Earnings and Claimant Count data is set to be released at 0830 UTC today.

EURUSD – 1 Hour Chart

eurusd-19-10-2016

As suggested in yesterday’s chart analysis, the EURUSD found resistance around the diagonal resistance area and has since been bearish. As also suggested, selling momentum seems to be weakening and price is struggling to form a lower low. The bearish moving averages continue to tighten, suggesting that price may attempt a bullish move. Buying opportunities could exist around the horizontal support at 1.0965 and if price moves above the diagonal 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. 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 Building Permits data is set to be released at 1230 UTC today. This is followed by US Crude Oil Inventories at 1430 UTC.

GBPUSD – 1 Hour Chart

gbpusd-19-10-2016

Price continues to range and move between a number of horizontal support and resistance levels. 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 Averages Earnings and Claimant Count data is set to be released at 0830 UTC today. This is followed by US Building Permits data at 1230 UTC and US Crude Oil Inventories at 1430 UTC.

NZDUSD – 1 Hour Chart

nzdusd-19-10-2016

As suggested in yesterday’s chart analysis, the NZDUSD closed above the horizontal resistance at 0.7185 and has since been bullish. The moving averages continue to be bullish and are widening, suggested that price could move higher. Buying opportunities could exist around the horizontal support at 0.7185, around the dynamic support of the moving averages and around the trend support 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 Building Permits data is set to be released at 1230 UTC today. This is followed by US Crude Oil Inventories at 1430 UTC.

USDCAD – 1 Hour Chart

usdcad-19-10-2016

The USDCAD was bearish during yesterday’s trading sessions. Price did find resistance around the shorter-term moving average but has seen become bullish again. The moving averages are very bearish, suggesting that price could move lower. Price action is choppy though and price could move either way. Trading opportunities could exist off the moving averages and around the other support and resistance areas on the above chart.

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 Building Permits data is set to be released at 1230 UTC today. This is followed by US Crude Oil Inventories at 1430 UTC. A Canadian Rate announcement is set at 1400 UTC today. This is followed by various speeches at 1515 UTC and 2015 UTC. The news is likely to cause a lot of movement on CAD pairs.

USDCHF – 1 Hour Chart

usdchf-19-10-2016

The USDCHF continues to range – price is moving between a clear horizontal support and resistance and moving in a general sideways direction. 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).

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 Building Permits data is set to be released at 1230 UTC today. This is followed by US Crude Oil Inventories at 1430 UTC.

USDJPY – 1 Hour Chart

usdjpy-19-10-2016

As identified in yesterday’s chart analysis, price was consolidating between a tightening support and resistance. Price has closed below the consolidation area, suggested that price may now move lower. The moving averages confirm this – they have crossed bearish and are widening. Selling opportunities could exist around the previous consolidation support and resistance, around the moving averages and if price moves below the horizontal support areas identified on the above chart. Price may stall or reverse around the horizontal support at 103.40, 103.20 and 102.80.

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 Building Permits data is set to be released at 1230 UTC today. This is followed by US Crude Oil Inventories at 1430 UTC.

XAUUSD – 1 Hour Chart

xauusd-19-10-2016

GOLD continues to range and move between clear horizontal support and resistance areas. The moving averages are bullish though and are widening, suggesting that price could break to the upside of the range. Buying opportunities could exist around the bullish moving averages, around the diagonal support area and if price closes above the range resistance at 1264.50.