Intraday Forex Analysis – 1 Hour Charts – December 06, 2016


AUDUSD – 1 Hour Chart

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As suggested in yesterday’s chart analysis, price reversed bearish around the identified horizontal resistance at 0.7495. The AUDUSD continues to move within the horizontal channel and range but recent price action is looking bullish. The moving averages have also crossed bullish and are widening, all suggesting that price could move above the horizontal resistance area and attempt a move higher. Trading opportunities could exist around the identified horizontal support and resistance areas and if price moves out of the range (break-out trade). Buying opportunities could exist around the identified diagonal support area and around the bullish 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. 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. A Australian GDP figure will be released at 0030 UTC.

EURGBP – 1 Hour Chart

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The EURGBP was very bullish during yesterday’s trading sessions. The moving averages are still bearish though and are steady but price is above one of the moving averages and could be forming a inverted head and shoulder pattern. The mixed signals suggest some market indecision but a possible bullish above the horizontal resistance at 0.8480. Buying opportunities could exist as price action forms the inverted head and shoulder pattern and around the previous swing low at 0.8305. Buying opportunities could also exist if price moves above the horizontal resistance area around 0.8480.

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 no major scheduled news that will directly impact this pair during today’s trading sessions.

EURUSD – 1 Hour Chart

eurusd-06-12-2016

Price has been very bullish. The moving averages are bullish and are widening, suggesting that price could still move higher. If price pulls-back before attempting another swing higher, buying opportunities could exist around the moving averages and around the previous consolidation resistance at 1.0680.

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 no major scheduled news that will directly impact this pair during today’s trading sessions.

GBPUSD – 1 Hour Chart

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As suggested in yesterday’s chart analysis, the GBPUSD continued to be bullish and has moved higher. The moving averages are bullish, suggesting that price could continue to uptrend. Price is looking a little over-extended though, suggesting that the GBPUSD could soon retrace. Buying opportunities could exist around the moving averages, around the trend support area and around the previous horizontal resistance at 1.2730.

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 that will directly impact this pair during today’s trading sessions.

NZDUSD – 1 Hour Chart

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Price has reversed bearish around the identified horizontal resistance at 0.7160 (as suggested in yesterday’s chart analysis). The NZDUSD continues to look choppy and indecisive. The moving averages confirm this – they are crossing frequently, are tight and are moving sideways. Trading opportunities could exist around the identified horizontal support and resistance areas and around the moving averages. If price moves above the horizontal resistance area at 0.7160, the NZDUSD may attempt a bullish move.

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. A GDT Price Index Figure is likely to be released around 1430-1530 UTC today. This is followed by a speech from the Reserve Bank of New Zealand at 2200 UTC.

USDCAD – 1 Hour Chart

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As suggested in yesterday’s chart analysis, the USDCAD found resistance around the shorter-term moving average and has moved lower. The moving averages are still bearish but are beginning to tighten, suggesting that bearish momentum could be weakening. Selling opportunities could exist around the previous swing low at 1.3280 and around the dynamic resistance of the moving averages. A bearish move could stall or reverse around the horizontal support at 1.3235.

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. A Canadian Trade Balance figure will be released at 1330 UTC today.

USDCHF – 1 Hour Chart

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Price initially found support around the range support area during yesterday’s trading sessions but has since moved below the consolidation, reversing bearish around the resistance of the moving averages (as suggested in yesterday’s chart analysis). The moving averages are bearish and steady, suggesting that the USDCHF could move lower. Selling opportunities could exist around the previous range support at 1.0085, around the moving averages and around the trend resistance area.

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 that will directly impact this pair during today’s trading sessions.

USDJPY – 1 Hour Chart

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The USDJPY is looking choppy and a little indecisive. The moving averages confirm this – they are tight and moving sideways. Price action has formed a possible horizontal channel at 113.00-114.65. 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). There is no major scheduled news that will directly impact this pair during today’s trading sessions.

XAUUSD – 1 Hour Chart

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As suggested in yesterday’s chart analysis, GOLD struggled to move lower and reversed bullish around the identified horizontal support area. The moving averages are bearish but are tight, suggesting that price may continue it’s bullish move/retracement. Buying opportunities could exist if price moves above the trend resistance area and around the horizontal support at 1161.85.