Intraday Forex Analysis – 1 Hour Charts – December 09, 2016
AUDUSD – 1 Hour Chart
As suggested in yesterday’s chart analysis, price found support around the trend support area and has since been bullish. The moving averages are bullish and are steady, suggesting that the AUDUSD could move higher. Price action has formed a bullish consolidation pattern. Buying opportunities could exist around the consolidation support area and around the horizontal support levels at 0.7410 and 0.7420. Price could stall or reverse around the horizontal resistance at 0.7500 and the consolidation resistance area.
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 US Consumer Sentiment Figure is set to be released at 1500 UTC today.
EURGBP – 1 Hour Chart
The EURGBP 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, the identified horizontal levels and 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. There is no major scheduled news today that will directly impact this pair.
EURUSD – 1 Hour Chart
Price is looking indecisive and slightly choppy. The moving averages have crossed bearish and are widening, signalling that the EURUSD could continue to move lower. Selling opportunities could exist around the dynamic resistance of the moving averages and around the previous low at 1.0705. Buying opportunities could exist as price tests the horizontal support area at 1.0530.
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. A US Consumer Sentiment Figure is set to be released at 1500 UTC today.
GBPUSD – 1 Hour Chart
The GBPUSD was bearish during yesterday’s trading sessions and has moved lower. The moving averages are bearish and are widening, suggesting that price could still move lower. Selling opportunities could exist around the moving averages, around the trend resistance and if price moves below the horizontal support at 1.2550.
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 US Consumer Sentiment Figure is set to be released at 1500 UTC today.
NZDUSD – 1 Hour Chart
As suggested in yesterday’s chart analysis, price reversed bullish around the previous horizontal resistance and the shorter-term moving average. The moving averages are bullish and are widening, suggesting that price could continue to uptrend. Buying opportunities could exist around the dynamic support of the moving averages, around the trend support area and around the horizontal support at 0.7150. A bullish move could stall or reverse around the horizontal resistance at 0.7220.
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 US Consumer Sentiment Figure is set to be released at 1500 UTC today.
USDCAD – 1 Hour Chart
The USDCAD was rejected around the previous horizontal support at 1.3235 and the shorter-term moving average and has since been bearish (as suggested in yesterday’s chart analysis). As also suggested, the bearish move is lacking momentum and price could start retracing today and be bullish. Buying opportunities could exist as price moves above the identified horizontal resistance areas, the moving averages and the trend resistance line.
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 US Consumer Sentiment Figure is set to be released at 1500 UTC today.
USDCHF – 1 Hour Chart
Price continues to look choppy and indecisive. The moving averages confirm this – they have crossed frequently and are providing no clear direction. Trading opportunities could exist around the identified horizontal support and resistance levels and around the moving averages. If the USDCHF moves above the horizontal resistance at 1.0185, price could attempt a bullish move.
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). A US Consumer Sentiment Figure is set to be released at 1500 UTC today.
USDJPY – 1 Hour Chart
The USDJPY continues to look indecisive. The moving averages confirm this – they have crossed frequently and are very tight. Trading opportunities could exist around the identified horizontal support and resistance levels, around the moving averages and around the trend support area. If price moves above the horizontal resistance at 114.65, the USDJPY could attempt a bullish move.
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). A US Consumer Sentiment Figure is set to be released at 1500 UTC today.
XAUUSD – 1 Hour Chart
As suggested in yesterday’s chart analysis, GOLD is ranging and came off the horizontal channel resistance during yesterday’s trading sessions. The moving averages confirm the lack of price direction – they are moving sideways and are very tight. Trading opportunities could exist around the range support and resistance and if price moves out of the range (break-out trade).
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