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

AUDUSD – 1 Hour Chart

As suggested in Friday’s chart analysis, the AUDUSD was bearish and has moved lower. The moving averages are bearish and are widening, suggesting that price could still move lower. Price is looking a little over-extended though, suggesting that price is due a retracement. If price does retrace, selling opportunities could exist around the key Fib levels, around the dynamic resistance of the moving averages and around the identified horizontal resistance levels.

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. The US Presidential Election result may be a game-changer for the Australian Dollar though. Fears over how a Trump led US will negatively impact the Australian economy are already showing. 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. There is no major scheduled news today that will directly impact this pair.

EURGBP – 1 Hour Chart

Price is moving within a horizontal channel (ranging), 0.8540-0.8620. 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 areas and if price moves out of the horizontal channel (break-out trade). If price breaks to the upside, the EURGBP could stall or reverse around the horizontal resistance levels at 0.8690 and 0.8780.

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 Court law has put a current hold on triggering Article 50. The British government will now have to go through UK parliament to trigger Article 50. This has given strength to the GBP, as Brexit may now not be such a “hard” Brexit and there is the slightest chance that Article 50 may now never be triggered. There is an ECB Speech at 1600 UTC today.

EURUSD – 1 Hour Chart

The EURUSD was slightly bearish during Friday’s trading sessions and moved slightly lower (as suggested in Friday’s chart analysis). The moving averages are bearish and steady, suggesting that price could move lower. Price is looking a little over-extended though, suggesting that the EURUSD is due a retracement. If price does retrace, selling opportunities could exist around the dynamic resistance of the moving averages, around the trend resistance area and around the identified horizontal resistance levels.

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. Most economists believe that a US rate hike could happen in December. A Trump led US may cause strength in the USD. There is a ECB Speech at 1600 UTC today.

GBPUSD – 1 Hour Chart

Price has moved below the horizontal support levels and could now start down-trending. The moving averages confirm this – they are bearish and steady. Selling opportunities could exist around the previous horizontal support levels at 1.2360-1.2380, around the bearish moving averages and around the trend resistance area.

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 Court law has put a current hold on triggering Article 50. The British government will now have to go through UK parliament to trigger Article 50. This has given strength to the GBP, as Brexit may now not be such a “hard” Brexit and there is the slightest chance that Article 50 may now never be triggered. US Fed Chair Yellen recently suggested that there could be a US rate hike before the end of this year. There is no major scheduled news today that will directly impact this pair.

NZDUSD – 1 Hour Chart

As suggested in Friday’s chart analysis, the NZDUSD found resistance around the shorter-term moving average and around the previous swing low and has since been bearish. The moving averages are bearish and are widening, suggesting that price could still move lower. Price is looking a little over-extended though, suggesting that the NZDUSD may soon start retracing. Selling opportunities could exist around the trend resistance area, around the dynamic resistance of the moving averages and around the identified horizontal resistance levels.

New Zealand’s economy continues to seem steady. As expected, the Reserve Bank of New Zealand have cut rates by 25 points, bring their official rate to 1.75%. 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. There is no major scheduled news today that will directly impact this pair.

USDCAD – 1 Hour Chart

Price is looking choppy and indecisive. The moving averages confirm this – they are crossing frequently and moving sideways. Trading opportunities could exist around the moving averages and around the several identified horizontal support and resistance levels.

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. A Trump led US could provide some strength in the USD. Recent Canadian economic figures have been mixed. 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. There is no major scheduled news today that will directly impact this pair.

USDCHF – 1 Hour Chart

The USDCHF continues to be bullish and trend higher. The moving averages are bullish but are beginning to tighten slightly, suggesting that buying momentum could be weakening and that price could soon start retracing. If price does start retracing, buying opportunities could exist around the several identified horizontal support levels 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. A Trump led US may cause weakness in the USD and possible strength to the CHF (safe-haven currency). There is no major scheduled news today that will directly impact this pair.

USDJPY – 1 Hour Chart

Price continues to be bullish and trend higher. The moving averages are bullish and steady, suggesting that price could still move higher. Buying opportunities could exist around the moving averages, around the trend support area and around the identified horizontal support areas. The USDJPY is now looking a little over-extended, suggesting that price could be due a retracement soon.

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. Most economists believe that a US rate hike could happen in December. A Trump led US may cause weakness in the USD and possible strength to the JPY (safe-haven currency). There is no major scheduled news today that will directly impact this pair.

XAUUSD – 1 Hour Chart

As suggested in Friday’s chart analysis, the bearish move lacked momentum and price has been retracing. The moving averages have crossed bearish now though and they are widening, suggesting that GOLD may attempt another move lower. Selling opportunities could exist around the bearish moving averages and around the previous range support and resistance areas.

Hits: 1