Intraday Forex Analysis – 1 Hour Charts – December 28, 2016

AUDUSD – 1 Hour Chart

Price found resistance around the shorter-term moving average (as suggested in yesterday’s chart analysis) but has since moved higher. The AUDUSD is now coming off the longer-term moving average and the trend resistance area. The moving averages are still bearish, suggesting that price may attempt a swing lower. Selling opportunities could exist around the longer-term moving average, around the trend resistance area and around the horizontal resistance at 0.7230. Price could stall or reverse around the horizontal support at 0.7165.

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 today that will directly impact this pair.

EURGBP – 1 Hour Chart

As suggested in yesterday’s chart analysis, the EURGBP is finding support around the shorter-term moving average. Price has formed a double-top pattern and also a potential horizontal channel at 0.8500-0.8540. Trading opportunities could exist around the range support and resistance and if the EURGBP moves out of the range (break-out trade). If price moves below the range, the EURGBP could reverse bullish around the longer-term moving average, around any of the Fib levels 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

Price has reversed bearish around the horizontal resistance at 1.0480 (as suggested in yesterday’s chart analysis). The EURUSD continues to range though and is moving within the identified horizontal channel. 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 today that will directly impact this pair.

GBPUSD – 1 Hour Chart

As suggested in yesterday’s chart analysis, the GBPUSD found resistance around the trend resistance and shorter-term moving average but failed to make a swing lower. The bearish moving averages are moving sideways and are beginning to tighten, suggesting that price is indecisive. Trading opportunities could exist around the horizontal support and resistance at 1.2240-1.2300 and if price moves out of the horizontal channel(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. There is no major scheduled news today that will directly impact this pair.

NZDUSD – 1 Hour Chart

The NZDUSD continues to range within the horizontal channel at 0.6865-0.6940. The moving averages confirm the lack of market direction – they are tight and moving sideways. 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 today that will directly impact this pair.

USDCAD – 1 Hour Chart

Price continues to be bullish and has moved higher (as suggested in yesterday’s chart analysis). The USDCAD is now looking a little over-extended and may soon start retracing. Buying opportunities could exist around the dynamic support of the moving averages and around the other identified support areas.

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 today that will directly impact this pair.

USDCHF – 1 Hour Chart

The USDCHF continues to be indecisive and range within a horizontal channel. 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). Trading opportunities could also exist around the symmetrical triangle support and resistance and if the USDCHF moves out of the pattern (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 today that will directly impact this pair.

USDJPY – 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. Price action has formed a large horizontal channel at 116.60-118.55 as well as a tighter horizontal channel at 117.10-117.85. Trading opportunities could exist around the identified support and resistance areas and if the USDJPY moves out of either of the ranges (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 today that will directly impact this pair.

XAUUSD – 1 Hour Chart

GOLD has been bullish but has formed a clear horizontal resistance at 1144.00. The moving averages are bullish and are widening, suggesting that price could move still move higher. Buying opportunities could exist around the dynamic support of the moving averages, around the trend support area and if price moves above the horizontal resistance area.

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