Intraday Forex Analysis – 1 Hour Charts – December 05, 2016
AUDUSD – 1 Hour Chart
The AUDUSD is looking a little choppy and indecisive. The moving averages confirm this – they are crossing frequently and moving sideways. Trading opportunities could exist around the identified horizontal support and resistance areas and around the moving averages. If price moves below the horizontal support area at 0.7370, the AUDUSD may attempt to trend lower.
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. US Non-Manufacturing PMI data is set to be released at 1500 UTC today.
EURGBP – 1 Hour Chart
As suggested in Friday’s chart analysis, price found resistance around the shorter-term moving average and has moved much lower. The moving averages are bearish and steady, suggesting that price could still downtrend. Selling opportunities could exist around the previous swing low at 0.8370, around the newly formed trend resistance area and 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 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. A UK Services PMI figure is set to be released at 0930 UTC today.
EURUSD – 1 Hour Chart
Price action has formed a horizontal channel (1.0525-1.0685) and price is moving within the channel (ranging). Trading opportunities could exist around the identified horizontal support and resistance areas and around the moving averages. If price moves below the horizontal support area at 1.0585, the EURUSD may attempt to trend lower.
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. US Non-Manufacturing PMI data is set to be released at 1500 UTC today.
GBPUSD – 1 Hour Chart
As suggested in Friday’s chart analysis, the GBPUSD has continued to be bullish and move higher. The moving averages are bullish, suggesting that price could move higher. Price is looking a little over-extended though, suggesting that price could soon retrace. Buying opportunities could exist around 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 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. A UK Services PMI figure is set to be released at 0930 UTC today. US Non-Manufacturing PMI data is set to be released at 1500 UTC today.
NZDUSD – 1 Hour Chart
The NZDUSD is looking a little choppy and indecisive. The moving averages confirm this – they are crossing frequently, are tight and moving sideways. Trading opportunities could exist around the identified horizontal support and resistance areas and around the moving averages. If price moves below the horizontal support area at 0.7050, price may attempt a bearish move to the recent lows at 0.6980.
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. US Non-Manufacturing PMI data is set to be released at 1500 UTC today.
USDCAD – 1 Hour Chart
As suggested in Friday’s chart analysis, price was initially bearish during Friday’s trading sessions and is now retracing. The moving averages are bearish and are widening, suggesting that price could move lower. Selling opportunities could exist around the dynamic resistance of the moving averages, around the trend resistance area and around the previous swing low at 1.3370.
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. US Non-Manufacturing PMI data is set to be released at 1500 UTC today.
USDCHF – 1 Hour Chart
The USDCHF continues to move within a horizontal channel and range. The moving averages confirm the lack of direction – they are moving sideways, crossing frequently and are tight. Trading opportunities could exist around the range support and resistance areas 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. 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). US Non-Manufacturing PMI data is set to be released at 1500 UTC today.
USDJPY – 1 Hour Chart
Price continued to retrace during Friday’s trading sessions. The moving averages are tightening and are beginning to move sideways, suggesting that the USDJPY may start moving sideways or retrace further. A possible horizontal channel could exist at 113.00-114.70. Trading opportunities could exist around the range support and resistance areas and if price moves out of the range (break-out trade).
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). US Non-Manufacturing PMI data is set to be released at 1500 UTC today.
XAUUSD – 1 Hour Chart
As suggested in Friday’s chart analysis, GOLD has found resistance around the longer-term moving average and the trend resistance area and is currently bearish. The moving averages are bearish but are beginning to move sideways, suggesting that price may struggle to move lower. GOLD may be forming a horizontal channel at 1162.00-1180.70. Trading opportunities could exist around the potential channel support and resistance and around the moving averages. If price closes above the channel and trend resistance, GOLD may attempt a bullish move.
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