Intraday Forex Analysis – 1 Hour Charts – October 20, 2016


AUDUSD – 1 Hour Chart

audusd-20-10-2016

As suggested in yesterday’s chart analysis, the AUDUSD found support around the trend support area and was very bullish. Price soon reversed though and is currently looking very bearish. The bullish moving averages are starting to tighten, suggesting that price could move lower. Buying opportunities could exist around the horizontal resistance turned 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 Manufacturing and Unemployment data is set to be released at 1230 UTC today.

EURGBP – 1 Hour Chart

eurgbp-20-10-2016

The EURGBP is ranging again. The moving averages are bearish though and are widening, suggesting that price could move lower. Trading opportunities could exist around the range support and resistance levels and if price moves out of the range (break-out trade). A selling opportunity could exist 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. UK Retail Sales data is set to be released at 0830 UTC. This is followed by the EUR Bid Rate announcement at 1145 UTC and an ECB Press Conference at 1230 UTC.

EURUSD – 1 Hour Chart

eurusd-20-10-2016

Price was bearish during yesterday’s trading sessions. The moving averages are bearish and price has closed slightly below the horizontal support at 1.0965, suggesting that price could move lower. Selling opportunities could exist around the trend resistance areas identified on the above chart, around the dynamic resistance of the moving averages and if price moves below the horizontal support at 1.0960. If price moves above the moving averages and the trend resistance areas, price may start an uptrend.

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. There is a EUR Bid Rate announcement at 1145 UTC today. This is followed by an ECB Press Conference and US Manufacturing and Unemployment data at 1230 UTC.

GBPUSD – 1 Hour Chart

gbpusd-20-10-2016

The GBPUSD continues to range and move within some clear horizontal channels. Price is currently finding support around the previous range resistance and the moving averages are bullish and are widening, all suggesting that price could move higher during today’s trading sessions. Buying opportunities could exist around the horizontal support and resistance areas identified on the above chart, around the moving averages 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 Retail Sales is set to be released at 0830 UTC. This will be followed by US Manufacturing and Unemployment data at 1230 UTC.

NZDUSD – 1 Hour Chart

nzdusd-20-10-2016

As suggested in yesterday’s chart analysis, the NZDUSD was bullish during yesterday’s trading sessions and price has moved higher. The moving averages continue to be bullish, suggesting that price could move higher. Buying opportunities could exist around the moving averages and around the horizontal resistance turned support at 0.7185.

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 Manufacturing and Unemployment data is set to be released at 1230 UTC today.

USDCAD – 1 Hour Chart

usdcad-20-10-2016

Price continues to be choppy and lack clear direction. The moving averages confirm this – they are tightening again and could cross again during today’s trading sessions. Trading opportunities could exist around the identified support and resistance areas and around 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. The most recent Rate announcement and BOC press conference did not provide any suggestion that there will be a rate hike any time soon though. US Manufacturing and Unemployment data is set to be released at 1230 UTC today.

USDCHF – 1 Hour Chart

usdchf-20-10-2016

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 are currently very tight. Trading opportunities could exist around the range support and resistance levels and if price moves out of the range (break-out trade). Buying opportunities could exist around the diagonal support area.

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 Manufacturing and Unemployment data is set to be released at 1230 UTC today.

USDJPY – 1 Hour Chart

usdjpy-20-10-2016

As suggested in yesterday’s chart analysis, price was bearish after the consolidation break-out. The moving averages are bearish and are widening, suggesting that price may move lower. Selling opportunities could exist around the dynamic resistance of the moving averages, around the horizontal resistance at 104.10 and around the previous consolidation resistance area. A bearish move may stall or reverse around the horizontal support areas at 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 Manufacturing and Unemployment data is set to be released at 1230 UTC today.

XAUUSD – 1 Hour Chart

xauusd-20-10-2016

As suggested in yesterday’s chart analysis, price moved above the range resistance and was bullish. The moving averages are bullish and are widening, suggesting that price could move higher. Buying opportunities could exist around the moving averages, around the previous horizontal resistance at 1264.40 and around the trend support area.