Intraday Forex Analysis – 1 Hour Charts – December 22, 2016

AUDUSD – 1 Hour Chart

As suggested in yesterday’s chart analysis, the AUDUSD has started ranging and has formed at horizontal channel at 0.7225-0.7280. The moving averages confirm the lack of market direction, they are tightening and beginning to move sideways. 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 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. US Durable Goods Orders and Unemployment data will be released at 1330 UTC. A Final US GDP figure will be released at the same time.

EURGBP – 1 Hour Chart

Price has moved above the recent consolidation and has been bullish (as suggested in yesterday’s chart analysis). The moving averages are bullish and are widening, suggesting that the EURGBP could move higher. Buying opportunities could exist around the previous horizontal resistance at 0.8425, around the dynamic support of the moving averages and around the trend support area.

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

The EURUSD was bullish yesterday and has forming a double-bottom price pattern (as suggested in yesterday’s chart analysis). As also suggested, the EURUSD is finding resistance area the potential bearish channel resistance. The moving averages are moving sideways but have a slight bullish direction, suggesting that price could move higher. Selling opportunities could exist around the bearish channel resistance area and around the range resistance at 1.0475. Buying opportunities could exist around the bearish channel support area, around the range support at 1.0355 and if price moves above the range resistance.

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. US Durable Goods Orders and Unemployment data will be released at 1330 UTC. A Final US GDP figure will be released at the same time.

GBPUSD – 1 Hour Chart

As suggested in yesterday’s chart analysis, price found resistance around the previous horizontal support at 1.2385 and has moved slightly lower. The GBPUSD may now range and move within the horizontal channel, 1.2320-1.2385. The moving averages confirm this – they are moving sideways. Trading opportunities could exist around the range support and resistance areas 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. 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. US Durable Goods Orders and Unemployment data will be released at 1330 UTC. A Final US GDP figure will be released at the same time.

NZDUSD – 1 Hour Chart

Price action has formed a potential horizontal channel and price is ranging. The moving averages confirm the lack of market direction – they are tightening and beginning to move sideways. Trading opportunities could exist around the range support and resistance areas, around the moving averages and if price moves out of the range (break-out trade).

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. US Durable Goods Orders and Unemployment data will be released at 1330 UTC. A Final US GDP figure will be released at the same time.

USDCAD – 1 Hour Chart

The USDCAD has been bullish and has moved higher. The moving averages are bullish but are tightening, suggesting that price may struggle to move much higher. If price retraces, buying opportunities could exist around the dynamic support of the moving averages, around the trend support area and around the horizontal support at 1.3360.

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. US Durable Goods Orders and Unemployment data will be released at 1330 UTC. A Final US GDP figure will be released at the same time. Canadian CPI and Retail Sales data will also be released at 1330 UTC.

USDCHF – 1 Hour Chart

Price 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 horizontal support and resistance levels.

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. US Durable Goods Orders and Unemployment data will be released at 1330 UTC. A Final US GDP figure will be released at the same time.

USDJPY – 1 Hour Chart

The USDJPY is looking a little indecisive. The moving averages confirm this – they are crossing frequently and moving sideways. Trading opportunities could exist around the horizontal support and resistance levels.

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. US Durable Goods Orders and Unemployment data will be released at 1330 UTC. A Final US GDP figure will be released at the same time.

XAUUSD – 1 Hour Chart

GOLD has formed a symmetrical triangle pattern and price is consolidating within the pattern. The moving averages confirm the lack of market momentum – they are crossing frequently and moving sideways. Trading opportunities could exist as price moves out of the pattern (break-out trade) and around the possible horizontal channel support and resistance, 1124.10 & 1141.20.

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