Intraday Forex Analysis – 1 Hour Charts – December 07, 2016
AUDUSD – 1 Hour Chart
Price continues to move within the horizontal channel (0.7370-0.7495) and range. The moving averages confirm the lack of direction – they are crossing frequently and moving sideways. Trading opportunities could exist around the identified horizontal support and resistance areas and if price moves out of the range (break-out trade).
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. US Crude Oil Inventories data will be released at 1530 UTC today.
EURGBP – 1 Hour Chart
As suggested in yesterday’s chart analysis, the EURGBP formed an inverted head and shoulder pattern and has been bullish. The moving averages have crossed bullish and are widening, suggesting that price could move higher. Buying opportunities could exist around the trend support area and around the dynamic support of the moving averages. A buying opportunity could also exist if price moves above the horizontal resistance at 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. A UK Manufacturing Production figure will be released at 0930 UTC today.
EURUSD – 1 Hour Chart
Price has been bearish and is retracing some of the recent bullish move. The moving averages are still bullish and are widening, suggesting that the uptrend could continue. Buying opportunities could exist around the moving averages, around the previous horizontal resistance (now support) at 1.0680 and around any of the key Fib levels. A bullish move could stall or reverse around the horizontal resistance at 1.0780.
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 Crude Oil Inventories data will be released at 1530 UTC today.
GBPUSD – 1 Hour Chart
The GBPUSD has been bearish and is retracing some of the recent bullish move. The moving averages are tightening and are beginning to move sideways. Price is also below the moving averages – all suggesting that the bearish move could continue. Buying opportunities could exist around any of the key Fib levels.
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 Manufacturing Production Figures is set to be released at 0930 UTC today. This will be followed by US Crude Oil Inventories at 1500 UTC.
NZDUSD – 1 Hour Chart
Price continues to look choppy and indecisive. The moving averages confirm this – they are crossing frequentl 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. US Crude Oil Inventories data will be released at 1530 UTC today.
USDCAD – 1 Hour Chart
As suggested in yesterday’s chart analysis, there was a lack of selling momentum during yesterday’s trading sessions and price has moved higher. The moving averages are bearish and are steady, suggesting that price may attempt another swing low. Selling opportunities could exist around the bearish moving averages and around the previous swing high at 1.3345. A bearish move may stall or reverse around the previous swing low 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 Bank of Canada Rate Announcement is at 1500 UTC today. This is followed by US Crude Oil Inventories at 1530 UTC.
USDCHF – 1 Hour Chart
The USDCHF has reversed bearish around the longer-term moving average (as suggested in yesterday’s chart analysis). The moving averages are bearish and are beginning to widen, suggesting that price could move lower. Selling opportunities could exist around the dynamic resistance of the moving averages, around the horizontal resistance at 1.0110 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). US Crude Oil Inventories data will be released at 1530 UTC today.
USDJPY – 1 Hour Chart
Price action continues to look choppy and a little indecisive. The moving averages confirm this – they are tight and moving sideways. The USDJPY is moving within a horizontal channel at 113.00-114.65 and is ranging. 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 Crude Oil Inventories data will be released at 1530 UTC today.
XAUUSD – 1 Hour Chart
GOLD has found resistance again at the long-term trend resistance area (identified in yesterday’s chart analysis). The moving averages are bearish and are widening but selling momentum is looking weak. Buying opportunities could exist around the horizontal support area at 1161.90 and if price moves above the moving averages and the trend resistance area.
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