Intraday Forex Analysis – 1 Hour Charts – December 23, 2016


AUDUSD – 1 Hour Chart

audusd-23-12-2016

Price action has formed a tight horizontal channel at 0.7200-0.7230 and the AUDUSD is ranging. Price has also formed a longer-term bearish channel. The moving averages are bearish and are steady, suggesting that the AUDUSD could move lower. Trading opportunities could exist around the range support and resistance and if price moves out of the range (break-out trade). Selling opportunities could exist around the bearish moving averages and the channel 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. 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-23-12-2016

As suggested in yesterday’s chart analysis, the EURGBP has moved higher and continues to be bullish. 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 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. A UK Current Account figure will be released at 0930 UTC today.

EURUSD – 1 Hour Chart

eurusd-23-12-2016

Price was rejected at the horizontal channel resistance and has since been bearish (as suggested in yesterday’s chart analysis). The moving averages confirm the market indecision – they are moving sideways. Trading opportunities could exist around the range support and resistance and if price moves out of the range (break-out trade).

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-23-12-2016

The GBPUSD moved below the range support during yesterday’s trading sessions and has since been bearish (as suggested in yesterday’s chart analysis). The moving averages are bearish and are steady, suggesting that the GBPUSD could move lower. Selling opportunities could exist around the dynamic resistance of the moving averages, around the trend resistance area and around the identified horizontal resistance areas at 1.2320 and 1.2385.

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. A UK Current Account figure will be released at 0930 UTC today.

NZDUSD – 1 Hour Chart

nzdusd-23-12-2016

Price continues to range within the horizontal channel at 0.6885-0.6940. Trading opportunities could exist around the range support and resistance 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. There is no major scheduled news that will directly impact this pair during today’s trading sessions.

USDCAD – 1 Hour Chart

usdcad-23-12-2016

As suggested in yesterday’s chart analysis, the USDCAD found support around the previous horizontal resistance at 1.3425 and has since been bullish. The moving averages are bullish, suggesting that price could still move higher. Buying opportunities could exist around the dynamic support of the moving averages, around the identified horizontal support areas and around the trend support area.

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. A Canadian GDP figure is set to be released at 1330 UTC today.

USDCHF – 1 Hour Chart

usdchf-23-12-2016

Price continues to be indecisive and move in a general sideways direction. The moving averages confirm the lack of market direction – they are crossing frequently and moving sideways. Trading opportunities could exist around the range support and resistance and if price moves out of the range (break-out trade).

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-23-12-2016

The USDJPY continues to be indecisive and move in a general sideways direction. The moving averages confirm the lack of market direction – they are crossing frequently and moving sideways. Price action has formed a large horizontal channel as well as a symmetrical triangle pattern. Trading opportunities could exist around the identified support and resistance areas and if price moves out of the range (break-out trade).

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-23-23-2016

The symmetrical triangle identified in yesterday’s chart analysis has held and price continues to move within the pattern. The moving averages confirm the lack of momentum – they are crossing frequently and moving sideways. Trading opportunities could exist around the consolidation support and resistance and if price moves out of the consolidation (break-out trade). The same approach can be taken for the horizontal channel at 1126.60-1141.25.