Intraday Forex Analysis – 1 Hour Charts – December 29, 2016


AUDUSD – 1 Hour Chart

audusd-29-12-2016

As suggested in yesterday’s chart analysis, the AUDUSD reversed bearish around the longer-term moving average and horizontal resistance level and attempted a swing lower. As also suggested, price reversed bullish around the horizontal support and previous swing low at 0.7165. The moving averages are tightening and moving sideways, suggesting market indecision. Price action has formed a potential horizontal channel at 0.7165-0.7215 and the AUDUSD may range within the channel. Trading opportunities could exist around the range support and resistance 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 Unemployment data is set to be released at 1330 UTC today. This is followed by US Crude Oil Inventories at 1600 UTC.

EURGBP – 1 Hour Chart

eurgbp-29-12-2016

Price found support around the 23.6% Fib level and has been bullish (as suggested in yesterday’s chart analysis). The moving averages are bullish but are not as wide, suggesting that buying momentum could be weakening. Buying opportunities could exist around the identified horizontal support levels.

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-29-12-2016

The EURUSD continues to range and move sideways. The moving averages confirm the lack of price direction – they are moving sideways and are very tight. Trading opportunities could exist around the range support and resistance (1.0355 & 1.0480) 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. US Unemployment data is set to be released at 1330 UTC today. This is followed by US Crude Oil Inventories at 1600 UTC.

GBPUSD – 1 Hour Chart

gbpusd-29-12-2016

Price reversed bearish around the horizontal resistance at 1.2300 and has moved lower (as suggested in yesterday’s chart analysis). The GBPUSD is now retracing. The moving averages are bearish but are tightening, suggesting that selling momentum is weakening. Selling opportunities could exist around the dynamic resistance of the moving averages, around the trend resistance area and around the horizontal resistance at 1.2300. The GBPUSD may stall or reverse around the horizontal support and previous swing low at 1.2200.

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 Unemployment data is set to be released at 1330 UTC today. This is followed by US Crude Oil Inventories at 1600 UTC.

NZDUSD – 1 Hour Chart

nzdusd-29-12-2016

The NZDUSD is currently around the horizontal channel resistance area. The moving averages are bullish and widening, suggesting that price may move above the resistance area and out of the range. Trading opportunities could exist around the range support and resistance (0.6865 & 0.6945) 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 Unemployment data is set to be released at 1330 UTC today. This is followed by US Crude Oil Inventories at 1600 UTC.

USDCAD – 1 Hour Chart

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As suggested in yesterday’s chart analysis, price has started to retrace and has been bearish. The bullish moving averages are tightening and are becoming more bearish, suggesting that the retracement could continue. Buying opportunities could exist around any of the key Fib levels.

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 Unemployment data is set to be released at 1330 UTC today. This is followed by US Crude Oil Inventories at 1600 UTC.

USDCHF – 1 Hour Chart

usdchf-29-12-2016

The USDCHF reversed bearish around the identified horizontal resistance at 1.0315 (as suggested in yesterday’s chart analysis). Price is still looking indecisive though. The moving averages confirm this – they and crossing frequently and moving sideways. Trading opportunities could exist around any of the identified support and resistance areas and if the USDCHF moves out of the range (break-out trade), 1.0220-1.0310.

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 Unemployment data is set to be released at 1330 UTC today. This is followed by US Crude Oil Inventories at 1600 UTC.

USDJPY – 1 Hour Chart

usdjpy-29-12-2016

As suggested in yesterday’s chart analysis, price moved below the range support area and has since been very bearish. The moving averages are bearish and are beginning to widen, suggesting that the USDJPY could move lower. Selling opportunities could exist around the dynamic resistance of the moving averages and around the previous range support at 117.10.

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 Unemployment data is set to be released at 1330 UTC today. This is followed by US Crude Oil Inventories at 1600 UTC.

XAUUSD – 1 Hour Chart

xauusd-29-12-2016

GOLD found support around the shorter-term moving average and has since been very bullish (as suggested in yesterday’s chart analysis). The moving averages are bullish and are widening, suggesting that price could still move higher. Buying opportunities could exist around the moving averages, around the trend support area and around the previous horizontal resistance at 1143.80. GOLD may stall or reverse around the potential trend-channel resistance area.