Intraday Forex Analysis – 1 Hour Charts – January 13, 2017
AUDUSD – 1 Hour Chart
As suggested in yesterday’s chart analysis, the AUDUSD was initially bullish but has since been retracing. The moving averages continue to be bullish and continue to widen. Price is still looking a little-overextended though. If the AUDUSD continues to retrace, buying opportunities could exist around the dynamic support of the moving averages, around the key Fib levels and around the trend support 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. 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. The President Elect’s latest speech provided no fiscal or economic stimulus details, causing the US Dollar to weaken. US Retail Sales and PPI data is set to be released at 1330 UTC today. This is followed by a Preliminary Consumer Sentiment figure at 1500 UTC.
EURGBP – 1 Hour Chart
Price found support around the longer-term moving average and range support and has since been bullish – breaking to the upside of the horizontal channel (as suggested in yesterday’s chart analysis). The moving averages are bullish but are tight, suggesting that buying momentum is weakening. Long opportunities could exist around the bullish moving averages and around the previous horizontal support and resistance areas, 0.8655 & 0.8695. The EURGBP may stall or reverse around the previous swing high at 0.8745.
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
As suggested in yesterday’s chart analysis, the EURUSD moved higher and has found support around the previous horizontal resistance at 1.0615. The moving averages are bullish and are widening, suggesting that price could move higher. Buying opportunities could exist around the horizontal support at 1.0615, around the dynamic support of the moving averages and if the EURUSD moves above the previous swing high at 1.0675. Price may stall or reverse around the previous swing high.
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. The President Elect’s latest speech provided no fiscal or economic stimulus details, causing the US Dollar to weaken. US Retail Sales and PPI data is set to be released at 1330 UTC today. This is followed by a Preliminary Consumer Sentiment figure at 1500 UTC.
GBPUSD – 1 Hour Chart
Price continues to be choppy and indecisive. The moving averages confirm this – they are crossing frequently and are providing no clear market direction. Trading opportunities could exist around the moving averages and around the identified horizontal support and resistance levels.
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. The President Elect’s latest speech provided no fiscal or economic stimulus details, causing the US Dollar to weaken. US Retail Sales and PPI data is set to be released at 1330 UTC today. This is followed by a Preliminary Consumer Sentiment figure at 1500 UTC.
NZDUSD – 1 Hour Chart
The NZDUSD was bullish during yesterday’s trading sessions and moved higher (as suggested in yesterday’s chart analysis). Price is now retracing and looking a little bearish. The moving averages are bullish and are widening, suggesting that the NZDUSD could continue to uptrend. Buying opportunities could exist around any of the key Fib levels, around the bullish moving averages and around the previous horizontal resistance at 0.7040.
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. The President Elect’s latest speech provided no fiscal or economic stimulus details, causing the US Dollar to weaken. US Retail Sales and PPI data is set to be released at 1330 UTC today. This is followed by a Preliminary Consumer Sentiment figure at 1500 UTC.
USDCAD – 1 Hour Chart
As suggested in yesterday’s chart analysis, price moved lower and was bearish. The USDCAD has since been retracing though but is finding resistance around the shorter-term moving average. Shorting opportunities could exist around the dynamic resistance of the moving averages, around the previous range support at 1.3195 and around the trend resistance area. Price action and the moving averages both suggest that the USDCAD may attempt a swing lower. Price could stall or reverse around the previous swing low at 1.3045.
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. The President Elect’s latest speech provided no fiscal or economic stimulus details, causing the US Dollar to weaken. US Retail Sales and PPI data is set to be released at 1330 UTC today. This is followed by a Preliminary Consumer Sentiment figure at 1500 UTC.
USDCHF – 1 Hour Chart
The USDCHF moved below the horizontal support area at 1.0095 and attempted a bearish move (as suggested in yesterday’s chart analysis). The move was short-lived though – price has since retraced and been bullish. The moving averages are bearish and are widening, suggesting that the USDCHF could attempt another bearish swing. Selling opportunities could exist around the previous horizontal support at 1.0115, around the bearish moving averages and if price moves below the horizontal support at 1.0060.
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. The President Elect’s latest speech provided no fiscal or economic stimulus details, causing the US Dollar to weaken. US Retail Sales and PPI data is set to be released at 1330 UTC today. This is followed by a Preliminary Consumer Sentiment figure at 1500 UTC.
USDJPY – 1 Hour Chart
As suggested in yesterday’s chart analysis, price found resistance around the shorter-term moving average and is currently bearish. The moving averages are bearish and are steady, suggesting that the USDJPY could move lower. Selling opportunities could exist around the bearish moving averages and around the horizontal resistance at 115.30. Price may stall or reverse bullish around the previous swing low at 113.85.
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. The President Elect’s latest speech provided no fiscal or economic stimulus details, causing the US Dollar to weaken. US Retail Sales and PPI data is set to be released at 1330 UTC today. This is followed by a Preliminary Consumer Sentiment figure at 1500 UTC.
XAUUSD – 1 Hour Chart
GOLD moved slightly higher during yesterday’s trading sessions but is now retracing. The moving averages are bullish and steady, suggesting that price could continue to uptrend. Price action is looking a little over-extended though, suggesting that GOLD is due a bearish move.
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