Intraday Forex Analysis – 1 Hour Charts – October 26, 2016

AUDUSD – 1 Hour Chart

Price is looking choppy and indecisive. The moving averages confirm this – they are crossing frequently and providing no clear direction. Trading opportunities could exist around the identified horizontal support and resistance areas and around 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. US Crude Oil Inventories is set to be released at 1430 UTC.

EURGBP – 1 Hour Chart

The EURGBP was moving within a tight range during yesterday’s trading sessions and eventually broke to the upside of the range (see yesterday’s chart analysis). Price could now move within a larger sideways channel, 0.8885-0.8975. The moving averages are tight and moving sideways, suggesting a lack of price momentum. Trading opportunities could exist around the range support and resistance, around the mid-range support and resistance level 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. There is no major scheduled news today that will directly impact this pair.

EURUSD – 1 Hour Chart

Price is ranging (moving sideways) between a horizontal support around 1.0850 and a horizontal resistance around 1.0895. The moving averages are bearish but are tightening and could cross bullish during today’s trading sessions, suggested that price may break to the upside of the range. If price does break to the upside, a bullish move may stall or reverse around the trend resistance area and around the previous horizontal support at 1.0960. Trading opportunities could exist around the range support and resistance and if price moves out of the range.

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. US Crude Oil Inventories is set to be released at 1430 UTC.

GBPUSD – 1 Hour Chart

As suggested in yesterday’s chart analysis, the GBPUSD found support around the range support area and has since been bullish. As mentioned a number of times, price is ranging. The moving averages confirm the lack of price direction – they are crossing frequently and are tight. 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. US Crude Oil Inventories is set to be released at 1430 UTC.

NZDUSD – 1 Hour Chart

Price is looking choppy and indecisive. The moving averages confirm this – they are crossing frequently and providing no clear direction. Trading opportunities could exist around the identified horizontal support and resistance areas and around the moving averages.

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. US Crude Oil Inventories is set to be released at 1430 UTC.

USDCAD – 1 Hour Chart

The USDCAD is looking a little indecisive but the overall trend is up. The moving averages are bullish but are beginning to strongly tighten, suggesting that buying momentum could be weakening. Buying opportunities could exist around the moving averages, around the horizontal support at 1.3280 and if price moves above the previous swing high at 1.3390. Selling opportunities could exist if price finds resistance around the previous swing high and if price moves below the horizontal support at 1.3280.

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 poor but the recent appreciation in OIL has given some 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 Crude Oil Inventories is set to be released at 1430 UTC.

USDCHF – 1 Hour Chart

As suggested in yesterday’s chart analysis, price closed above the horizontal resistance at 0.9955 and moved much the higher. The bullish move was quickly reversed though and price is now back around the support area. The moving averages are bullish but are tightening and could cross bearish during today’s trading sessions, suggesting that price could move lower. If price closes below the moving averages and the trend support area, price could attempt a bearish move. A bearish move could stall or reverse around any of the identified horizontal support areas. Buying opportunities could exist around the dynamic support of the moving averages, around the trend support area and around the identified horizontal support areas.

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 Crude Oil Inventories is set to be released at 1430 UTC.

USDJPY – 1 Hour Chart

The USDJPY attempted a bullish during yesterday’s trading sessions but the move was reversed. Price is currently finding support around the moving averages and trend support area. The moving averages are bullish and are showing little sign of weakening, suggesting that price could move higher. Buying opportunities could exist around the dynamic support or the moving averages, around the horizontal support at 104.15 and around the trend support area.

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 Crude Oil Inventories is set to be released at 1430 UTC.

XAUUSD – 1 Hour Chart

As suggested in yesterday’s chart analysis, the bullish move on GOLD has stalled around the channel resistance area and is starting to reverse bearish. The moving averages continue to cross frequently and move sideways, suggesting a lack of market direction and indecision. Buying opportunities could exist around the bullish channel support area, if price moves above the channel resistance, around the moving averages and around the horizontal support at 1262.00. A bullish move could also stall or reverse around the channel resistance area. If price finds support around the moving averages, price may attempt an upside break of the channel.

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