Intraday Forex Analysis – 1 Hour Charts – October 21, 2016


AUDUSD – 1 Hour Chart

audusd-21-10-2016

As suggested in yesterday’s chart analysis, the AUDUSD has moved lower and has been bearish. Price has closed below a clear previous swing low and the moving averages. The moving averages are also tightening, all suggesting that price could be in the process of starting a down-trend. Selling opportunities could exist around any of the key Fib levels and around the dynamic resistance of the moving averages.

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. There is no major scheduled news today that will directly impact this currency pair.

EURGBP – 1 Hour Chart

eurgbp-21-10-2016

As suggested in yesterday’s chart analysis, price found resistance around the longer-term moving average and the previous horizontal support and has since been bearish. The moving averages continue to be bearish but they are starting to weaken slightly. Selling opportunities could exist around the dynamic resistance of the moving averages and around the horizontal resistance levels at 0.8910 and 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. There is no major scheduled news today that will directly impact this currency pair.

EURUSD – 1 Hour Chart

eurusd-21-10-2016

Price found resistance around the bearish moving averages and the trend resistance and has since been very bearish (as suggested in yesterday’s chart analysis). The moving averages are bearish and are widening again, suggesting that price could move lower. Selling opportunities could exist around the dynamic resistance of the moving averages and around the trend resistance areas.

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 no major scheduled news today that will directly impact this currency pair.

GBPUSD – 1 Hour Chart

gbpusd-21-10-2016

As mentioned a number of times now, the GBPUSD is ranging. The moving averages confirm the lack of price direction – they are tight and moving sideways. Trading opportunities could exist around the range support and resistance 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. There is no major scheduled news today that will directly impact this currency pair.

NZDUSD – 1 Hour Chart

nzdusd-21-10-2016

The NZDUSD is retracing a strong portion of the recent bullish move. The moving averages are still bullish but they are tightening. Buying opportunities could exist around the 50.0% and 61.8% Fib levels and around the previous swing high at 0.7120.

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. There is no major scheduled news today that will directly impact this currency pair.

USDCAD – 1 Hour Chart

usdcad-21-10-2016

Price continues to be choppy and lack clear direction. The moving averages confirm this – they are crossing frequently. 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. Canadian CPI and Retails Sales data is set to be released at 1230 UTC today.

USDCHF – 1 Hour Chart

usdchf-21-10-2016

As suggested in yesterday’s chart analysis, the USDCHF found support around the diagonal/trend support and has since been bullish. The moving averages are bullish and are widening, suggesting that price could move higher. Buying opportunities may exist around the dynamic support of the moving averages, around the trend support area and around the several horizontal support areas 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. 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 no major scheduled news today that will directly impact this currency pair.

USDJPY – 1 Hour Chart

usdjpy-21-10-2016

The USDJPY is ranging between the horizontal support at 103.20 and the horizontal resistance at 104.60. The moving averages confirm the lack of market direction – they are crossing frequently and moving sideways. Trading opportunities could exist around the several horizontal support and resistance areas identified on the above chart and around the previous trend resistance area (as support).

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. There is no major scheduled news today that will directly impact this currency pair.

XAUUSD – 1 Hour Chart

xauusd-21-10-2016

GOLD was bearish during yesterday’s trading sessions. The moving averages are still bullish though and price is around the previous horizontal resistance, suggesting that price could move higher. Buying opportunities could exist around the moving averages, around the trend support area and around the previous horizontal resistance (now support) at 1264.00.