Intraday Forex Analysis – 1 Hour Charts – December 27, 2016
AUDUSD – 1 Hour Chart
As suggested in our last chart analysis, the AUDUSD has moved lower and continues to be bearish. The moving averages are bearish and are widening, suggesting that price could continue to downtrend. Selling opportunities could exist around the dynamic resistance of the moving averages, around the identified horizontal resistance levels and around the trend resistance.
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. A US Consumer Confidence figure is set to be released at 1500 UTC today.
EURGBP – 1 Hour Chart
Price continues to move higher and be bullish (as suggested in our last chart analysis). The moving averages are bullish and are widening, suggesting that the EURGBP could move higher. Buying opportunities could exist around the dynamic support of the moving averages, around any of the key Fib levels and around the identified trend support area. Price may stall or reverse around the horizontal resistance area at 0.8540.
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 continues to range and move in a general sideways direction. The moving averages confirm the market indecision – they are also moving sideways. Price action has formed a tight horizontal channel at 1.0430-1.0465 and a wider horizontal channel at 1.0355-1.0475. Trading opportunities could exist around both channel support and resistance areas and if the EURUSD moves out of either of the channels (break-out trades).
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. A US Consumer Confidence figure is set to be released at 1500 UTC today.
GBPUSD – 1 Hour Chart
Price action has formed a number of clear lower swing lows and lower swing highs and price is down-trending. The moving averages are bearish and are steady, suggesting that the GBPUSD could still move lower. Selling opportunities could exist around the bearish moving averages, around the trend resistance area and around the 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 US Consumer Confidence figure is set to be released at 1500 UTC today.
NZDUSD – 1 Hour Chart
The NZDUSD was bearish during the last trading sessions but price is now bullish and is retracing some of the recent swing lower. The moving averages are bearish but are tight, suggesting a lack of selling momentum. It is possible that price could range within the potential horizontal channel at 0.6865-0.6940. Trading opportunities could exist around the range support and resistance areas and if the NZDUSD 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. A US Consumer Confidence figure is set to be released at 1500 UTC today.
USDCAD – 1 Hour Chart
As suggested in our last chart analysis, price has been bullish and has formed a swing higher. The moving averages are bullish and are widening, suggesting that the USDCAD could move higher. Price is currently moving tightly sideways and could start retracing before moving higher. Buying opportunities could exist around any of the key Fib levels, around the moving averages and around the trend support area. A buying opportunity could also exist if price moves above the horizontal resistance and the recent swing high at 1.3545.
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 US Consumer Confidence figure is set to be released at 1500 UTC today.
USDCHF – 1 Hour Chart
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. A US Consumer Confidence figure is set to be released at 1500 UTC today.
USDJPY – 1 Hour Chart
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 tightening consolidation 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. A US Consumer Confidence figure is set to be released at 1500 UTC today.
XAUUSD – 1 Hour Chart
As suggested in our last chart analysis, GOLD moved above the symmetrical triangle price pattern and has rallied higher. The moving averages are still signalling indecision – they are moving sideways and are tight. Price action is forming a higher swing high and price is looking bullish. Buying opportunities could exist around the identified horizontal support levels, around the moving averages and around the trend support area.
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