Intraday Forex Analysis – 1 Hour Charts – January 16, 2017


AUDUSD – 1 Hour Chart

AUDUSD - 16.01.2017

As suggested in Friday’s chart analysis, price has been retracing and has been slowly moving lower. The bullish moving averages are starting to tighten and move slightly sideways, signalling the potential change in momentum. Buying opportunities could exist around any of the key Fib levels, around the longer-term moving average 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. There is no major scheduled news that will directly impact this pair during today’s trading sessions.

EURGBP – 1 Hour Chart

EURGBP - 16.01.2017

The EURGBP has opened much higher and has continued the clear uptrend. The moving averages are bullish and are widening, suggesting that price may still move higher. If the EURGBP retraces before attempting a move higher, buying opportunities could exist around the previous horizontal resistance at 0.8750, around the dynamic support of the moving averages and around the identified trend support areas.

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 a Bank of England Speech at 1830 UTC today.

EURUSD – 1 Hour Chart

EURUSD - 16.01.2017

Price attempted a move higher during Friday’s trading sessions but the move reversed bearish (as suggested in Friday’s chart analysis) and has since been finding support around the horizontal support at 1.0600 (identified in Friday’s chart analysis). The moving averages are bullish but moving sideways, suggesting some market indecision. Trading opportunities could exist around the identified support and resistance areas.

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. There is no major scheduled news that will directly impact this pair during today’s trading sessions.

GBPUSD – 1 Hour Chart

GBPUSD - 16.01.2017

The GBPUSD has gapped much lower and has formed a clear downtrend (lower swing highs and lower swing lows). Selling opportunities could exist around the previous swing low at 1.2070, around the moving averages and around the trend resistance area. The moving averages are crossing bearish, suggesting that the downtrend could continue.

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. There is a Bank of England Speech at 1830 UTC today.

NZDUSD – 1 Hour Chart

NZDUSD - 16.01.2017

Price continues to retrace and be slightly bearish. The NZDUSD has attempted to swing higher but has been rejected several times. The moving averages are very bullish and are steady, suggesting that price could move higher. Buying opportunities may exist around the longer-term moving average, around the previous horizontal resistance at 0.7040 and if the NZDUSD moves above the horizontal resistance levels at 0.7125 and 0.7135.

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. There is no major scheduled news that will directly impact this pair during today’s trading sessions.

USDCAD – 1 Hour Chart

USDCAD - 16.01.2017

As suggested in Friday’s chart analysis, the USDCAD has been finding resistance around the shorter-term moving average and has moved slightly lower. The moving averages are still bearish, suggesting that price may attempt a move lower. Selling opportunities could exist around the moving averages and around the horizontal resistance levels at 1.3195 and 1.3270. A bearish move 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. There is no major scheduled news that will directly impact this pair during today’s trading sessions.

USDCHF – 1 Hour Chart

USDCHF - 16.01.2017

The USDCHF continues to downtrend but price is looking choppy. Price has been finding resistance around the previous horizontal support at 1.0115 (as suggested in Friday’s chart analysis). The moving averages are bearish and widening, suggesting that the USDCHF could move lower. Selling opportunities could exist around the horizontal resistance at 1.0115, around the longer-term moving average and if price moves below the horizontal support and previous swing low at 1.0060. The USDCHF could stall or reverse bullish around the identified diagonal support and around the previous swing low.

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. There is no major scheduled news that will directly impact this pair during today’s trading sessions.

USDJPY – 1 Hour Chart

USDJPY - 16.01.2017

As suggested in Friday’s chart analysis, price reversed bearish around the longer-term moving average and previous horizontal support at 115.30 and has moved lower. The moving averages continue to be bearish, suggesting that the USDJPY could still move lower. Selling opportunities could exist around the dynamic resistance of the moving averages, around the trend resistance area and around the horizontal resistance levels at 113.85 and 115.30.

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. There is no major scheduled news that will directly impact this pair during today’s trading sessions.

XAUUSD – 1 Hour Chart

GOLD - 16.01.2017

GOLD continues to be bullish and uptrend. The moving averages are bullish and steady, suggesting that the uptrend could continue. Price is currently struggling to move above the recent swing high at 1206.10, suggesting that GOLD could retrace and be bearish. Price may start ranging within the potential horizontal channel at 1189.25-1206.10. Trading opportunities could exist around the range support and resistance and if price moves out of the range (break-out trade). Buying opportunities could exist around the dynamic support of the moving averages and around the trend support area.