Intraday Forex Analysis – 1 Hour Charts – January 18, 2017


AUDUSD – 1 Hour Chart

AUDUSD - 18.01.2017

The AUDUSD has been bullish and has moved higher (as suggested in yesterday’s chart analysis). Price is clearly up-trending. The moving averages are bullish but are tight, suggesting that buying momentum could be weakening. If the AUDUSD retraces, buying opportunities could exist around the moving averages, around the previous horizontal resistance at 0.7500 & 0.7515 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 CPI data is set to be released at 1330 UTC today. This is followed by a Fed Chair Speech at 2000 UTC. Australian Employment data is set to be released at 0030 UTC.

EURGBP – 1 Hour Chart

EURGBP - 18.01.2017

Price was very bearish during yesterday’s trading sessions and has moved below some clear swing lows of the recent uptrend. The moving averages are tightening and are about to cross bearish, suggesting that the EURGBP could continue to move lower. Selling opportunities could exist around the identified horizontal resistance levels at 0.8655 & 0.8710, around the dynamic resistance of the moving averages and around the trend resistance 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. British Prime Minister Theresa May has provided Brexit negotiation details and announced what deal the UK government would like as they leave the EU. This has given strength to the GBP. A UK Average Earnings figure and Claimant Count data is set to be released at 0930 UTC today.

EURUSD – 1 Hour Chart

EURUSD - 18.01.2017

As suggested in yesterday’s chart analysis, the EURUSD moved above the swing high at 1.0675 and has been bullish. Price is now retracing. The moving averages are bullish but are tight, suggesting that buying momentum could be weakening. Buying opportunities could exist around the identified horizontal support levels, around the bullish moving averages and around the trend support area. The EURUSD may stall or reverse around the previous swing high at 1.0715.

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 CPI data is set to be released at 1330 UTC today. This is followed by a Fed Chair Speech at 2000 UTC.

GBPUSD – 1 Hour Chart

GBPUSD - 18.01.2017

Price was very bullish during yesterday’s trading sessions and is now retracing. The moving averages have crossed bullish and are widening and price has moved above the recent swing high, both suggesting that the GBPUSD could uptrend. Buying opportunities could exist around the previous horizontal support levels at 1.2290 & 1.2220, around the dynamic support of the moving averages and around any of the key Fib 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. British Prime Minister Theresa May has provided Brexit negotiation details and announced what deal the UK government would like as they leave the EU. This has given strength to the GBP. A UK Average Earnings figure and Claimant Count data is set to be released at 0930 UTC today. US CPI data is set to be released at 1330 UTC today. This is followed by a Fed Chair Speech at 2000 UTC.

NZDUSD – 1 Hour Chart

NZDUSD - 18.01.2017

As suggested in yesterday’s chart analysis, the NZDUSD has continued to move higher and has been bullish. Price is clearly up-trending. Long opportunities could exist around the trend support area, around the moving averages and around the previous horizontal resistance levels at 0.7125 & 0.7135. If price continues to retrace without moving higher, buying opportunities could exist around any of the key Fib levels.

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 CPI data is set to be released at 1330 UTC today. This is followed by a Fed Chair Speech at 2000 UTC.

USDCAD – 1 Hour Chart

USDCAD - 18.01.2017

Price has stalled and reversed bullish around the previous swing low at 1.3035 (as suggested in yesterday’s chart analysis). The moving averages continue to be bearish, suggesting that price may attempt to move lower again. Selling opportunities could exist if price moves below the horizontal support at 1.3035, around the dynamic resistance of the moving averages, around the previous horizontal support at 1.3110 and around the trend resistance area.

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 CPI data is set to be released at 1330 UTC today. This is followed by a Fed Chair Speech at 2000 UTC. A Bank of Canada Rate Announcement is set for 1500 UTC. This is followed by a Press Conference at 1615 UTC.

USDCHF – 1 Hour Chart

USDCHF - 18.01.2017

As suggested in yesterday’s chart analysis, price moved below the most recent swing low and has since been bearish. The USDCHF is clearly down-trending. The moving averages are bearish and steady, suggesting that the bearish direction could continue. Selling opportunities could exist around the bearish moving averages, around the trend resistance area and around the previous horizontal support levels at 1.0060 & 1.0070.

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 CPI data is set to be released at 1330 UTC today. This is followed by a Fed Chair Speech at 2000 UTC.

USDJPY – 1 Hour Chart

USDJPY - 18.01.2017

The USDJPY has continued to be bearish and move lower (as suggested in yesterday’s chart analysis). The moving averages are bearish and widening, suggesting that price could continue to move lower. Selling opportunities could exist around the trend resistance area, around the bearish moving averages and around the previous horizontal support at 113.80. Price may stall or reverse around the previous swing low at 112.55.

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 CPI data is set to be released at 1330 UTC today. This is followed by a Fed Chair Speech at 2000 UTC.

XAUUSD – 1 Hour Chart

XAUUSD - 18.01.2017

GOLD continues to be bullish and move within a clear bullish channel. The moving averages are bullish and are widening, suggesting that price could still move higher. Buying opportunities could exist around the dynamic support of the moving averages, around the previous horizontal resistance at 1205.85 and around the bullish channel support area. If GOLD moves below the channel support, price may become very bearish and start retracing the recent bullish run.