Intraday Forex Analysis – 1 Hour Charts – December 20, 2016


AUDUSD – 1 Hour Chart

audusd-20-12-2016

The AUDUSD continues to be bearish and has moved lower (as suggested in yesterday’s chart analysis). The moving averages are still bearish and are steady, suggesting that the downside move could continue. Price is looking a little over-extended though, signalling that the AUDUSD could start retracing and be bullish. Selling opportunities could exist around the previous horizontal support at 0.7275, around the dynamic resistance of the moving averages and around any of the key Fib 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. There are concerns over how a Trump led US could negatively impact the Australian economy. The US Federal Reserve have increased interest rates to 0.75%. The US Dollar could continue to strengthen long-term, if further rate hikes are expected. There is no major scheduled news that will directly impact this pair during today’s trading sessions.

EURGBP – 1 Hour Chart

eurgbp-20-12-2016

As suggested in yesterday’s chart analysis, price has reversed bearish around the identified resistance. The EURGBP continues to be choppy and move within a horizontal channel (range). The moving averages confirm the lack of market direction – they are tight, moving sideways and crossing frequently. Trading opportunities could exist around the range support and resistance areas (0.8335 & 0.8425) and if price moves out of the range (break-out trade).

The British Prime Minister has announced that Article 50 will be triggered by the end of March 2017. Most economists believe that sterling will continue to weaken long-term. There is no major scheduled news that will directly impact this pair during today’s trading sessions.

EURUSD – 1 Hour Chart

eurusd-20-12-2016

The EURUSD found resistance around the 38.2% Fib level and has since been bearish (as suggested in yesterday’s chart analysis). The moving averages are starting to tighten and price is looking a little over-extended, both suggesting that the EURUSD may start retracing and form a potential double-bottom pattern. Buying opportunities could exist around the previous swing low at 1.0370. Selling opportunities could exist around the identified horizontal resistance levels and around the moving averages.

The future of the Euro is very unclear (not uncertain, just indecisive). Some economists are expecting a 1.0000 parity between the Euro and US Dollar. The US Federal Reserve have increased interest rates to 0.75%. The US Dollar could continue to strengthen long-term, if further rate hikes are expected. There is no major scheduled news that will directly impact this pair during today’s trading sessions.

GBPUSD – 1 Hour Chart

gbpusd-20-12-2016

As suggested in yesterday’s chart analysis, price moved lower but has found support around the previous swing low at 1.2380. The moving averages are starting to tighten and move sideways, suggesting some market indecision or weakening selling momentum. Trading opportunities could exist around the horizontal support at 1.2380 and the horizontal resistance at 1.2500. Trading opportunities could also exist around the moving averages and if price moves above the horizontal resistance or below the horizontal support.

The British Prime Minister has announced that Article 50 will be triggered by the end of March 2017. The US Federal Reserve have increased interest rates to 0.75%. The US Dollar could continue to strengthen long-term, if further rate hikes are expected. There is no major scheduled news that will directly impact this pair during today’s trading sessions.

NZDUSD – 1 Hour Chart

nzdusd-20-12-2016

The NZDUSD has been bearish and has moved lower. The moving averages are still bearish but are beginning to tighten, suggesting that price could soon start retracing. Selling opportunities could exist 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. The US Federal Reserve have increased interest rates to 0.75%. The US Dollar could continue to strengthen long-term, if further rate hikes are expected. A New Zealand GDT Price Index figure should be released around 1430-1530 UTC today.

USDCAD – 1 Hour Chart

usdcad-20-12-2016

The uptrend has continued and price has moved higher (as suggested in yesterday’s chart analysis). The bullish moving averages are starting to tighten, suggesting that buying momentum could be weakening. If the USDCAD starts to retrace, buying opportunities could exist around the horizontal support levels at 1.3395 and 1.3320 and around the bullish moving averages.

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. The appreciation of OIL has given some strength to the Canadian Dollar. The US Federal Reserve have increased interest rates to 0.75%. The US Dollar could continue to strengthen long-term, if further rate hikes are expected. There is no major scheduled news that will directly impact this pair during today’s trading sessions.

USDCHF – 1 Hour Chart

usdchf-20-12-2016

As suggested in yesterday’s chart analysis, the USDCHF reversed around the longer-term moving average and has since been bullish. The moving averages are now tightening and starting to move sideways, suggesting that the bullish move higher may fail and that the USDCHF could form a double-top price pattern. Selling opportunities could exist around the previous swing high at 1.0335.

The US Federal Reserve have increased interest rates to 0.75%. The US Dollar could continue to strengthen long-term, if further rate hikes are expected. There is no major scheduled news that will directly impact this pair during today’s trading sessions.

USDJPY – 1 Hour Chart

usdjpy-20-12-2016

Price found support around the 50.0% Fib level and has been bullish (as suggested in yesterday’s chart analysis). The moving averages are now tightening and starting to move sideways, suggesting that the bullish move higher may fail and that the USDJPY could form a double-top price pattern or range. Selling opportunities could exist around the previous swing high at 118.55. Buying opportunities could exist around the trend support area and around the horizontal support at 116.60.

The Bank of Japan have kept interest rates at a low of -0.10%. The US Federal Reserve have increased interest rates to 0.75%. The US Dollar could continue to strengthen long-term, if further rate hikes are expected. There is no major scheduled news that will directly impact this pair during today’s trading sessions.

XAUUSD – 1 Hour Chart

xauusd-20-12-2016

GOLD found resistance around the 50.0% Fib level and the longer-term moving average, and has been bullish (as suggested in yesterday’s chart analysis). The moving averages are now tightening and starting to move sideways, suggesting that the attempt to swing lower could fail. Buying opportunities could exist around the horizontal support area at 1124.15. If price retraces further, selling opportunities could exist around the trend resistance area.