Intraday Forex Analysis – 1 Hour Charts – January 23, 2017


AUDUSD – 1 Hour Chart

AUDUSD - 23.01.2017

As suggested in Friday’s chart analysis, price found support around the upwards channel support area and around the longer-term moving average and has been bullish. The moving averages are bullish but are tight, suggesting that the AUDUSD may struggle to move higher and could soon start retracing. Buying opportunities could exist around the dynamic support of the moving averages, around the trend support area and around the identified horizontal support levels. Price may stall or reverse around the previous swing high at 0.7585.

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 - 23.01.2017

Price has been bearish and is currently attempting a move to the recent swing low at 0.8610. The moving averages are bearish but are tightening, signalling that selling momentum could be weakening. Selling opportunities could exist around the bearish moving averages, around the identified horizontal levels and if price the EURGBP moves below the horizontal support at 0.8610. If price is rejected at the horizontal support level, the EURGBP may stall or reverse bullish around the horizontal 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. 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. There is an ECB Speech scheduled at 2330 UTC.

EURUSD – 1 Hour Chart

EURUSD - 23.01.2017

The EURUSD has been bullish and has moved higher. Price is clearly up-trending. The moving averages are about to cross bullish, suggesting that the EURUSD could continue to be bullish. If price pulls-back before attempting another bullish move, long opportunities could exist around the previous horizontal resistance levels at 1.0715 & 1.0695 and around the moving averages.

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 an ECB Speech scheduled at 2330 UTC.

GBPUSD – 1 Hour Chart

GBPUSD - 23.01.2017

Price has been bullish and is moving much higher. The GBPUSD may now have some direction – price has been choppy and indecisive for the last couple of weeks. The moving averages are bullish, suggesting that the GBPUSD could move higher. Buying opportunities may exist around the previous horizontal levels at 1.2425 & 1.2365 and around the dynamic support of the moving averages.

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. President-Elect Trump is due to speak again during today’s trading sessions. There is no major scheduled news that will directly impact this pair during today’s trading sessions.

NZDUSD – 1 Hour Chart

NZDUSD - 23.01.2017

As suggested in Friday’s chart analysis, the NZDUSD found support around the trend support area and has been bullish. Price is currently struggling to make a higher high and is being rejected around the horizontal resistance at 0.7220. The moving averages have also crossed bearish, suggesting that selling momentum is strengthening. Selling opportunities could exist around the horizontal resistance at 0.7220. Price may stall and find support around the trend support area and around the identified horizontal 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. There is no major scheduled news that will directly impact this pair during today’s trading sessions.

USDCAD – 1 Hour Chart

USDCAD - 23.01.2017

Price is bearish and is retracing some of the recent bullish move. The moving averages are bullish and steady, suggesting that the USDCAD could attempt a swing higher. Long opportunities could exist around any of the key Fib levels, around the longer-term moving average and around the horizontal resistance at 1.3185.

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 - 23.01.2017

The USDCHF has been bearish and has moved lower. The downtrend continues. The moving averages suggest that selling momentum is weakening though – they have crossed bullish. Price is finding support around the bearish channel support area and could start retracing during today’s trading sessions. Buying opportunities could exist around the channel support area. Shorting opportunities could exist around the identified horizontal resistance levels, around the moving averages and around the channel resistance.

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 - 23.01.2017

Price is looking choppy and is ranging within a horizontal channel at 112.55-115.50. The moving averages confirm the market indecision – they have crossed frequently and are now tightening. Trading opportunities could exist around the range support and resistance area and if the USDJPY moves out of the horizontal channel (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. 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

XAUUSD - 23.01.2017

As suggested in Friday’s chart analysis, GOLD has found resistance around the previous trend support line and around the horizontal channel resistance at 1218.00. Price continues to range within the horizontal channel. The moving averages confirm the current indecision – they are moving sideways and are providing no clear direction. 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 moving averages and around the trend support area.