Intraday Forex Analysis – 1 Hour Charts – January 26, 2017
AUDUSD – 1 Hour Chart
As suggested in yesterday’s chart analysis, the AUDUSD reversed bullish around the horizontal channel support. Price continues to range within the horizontal channel at 0.7520-0.7600 and is moving sideways. The moving averages confirm the current indecision – they are tight and moving sideways. Trading opportunities could exist around the horizontal channel support and resistance and if the AUDUSD moves out of the channel (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. 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. Trump’s latest speech provided no fiscal or economic stimulus details, causing the US Dollar to weaken. US Unemployment Claims data is set to be released at 1330 UTC today.
EURGBP – 1 Hour Chart
Price has been bearish and the downtrend has continued (as suggested in yesterday’s chart analysis). The moving averages are bearish and are widening, signalling that the EURGBP could move lower. Price is looking a little over-extended though, suggesting that a bullish retracement is due. Selling opportunities could exist around the dynamic resistance of the moving averages, around the key Fib levels and around the horizontal resistance level at 0.8585.
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. The UK Supreme Court has ruled that triggering article 50 and the Brexit negotiations will need to go through British parliament. A UK Preliminary GDP Figure is set to be released at 0930 UTC today.
EURUSD – 1 Hour Chart
As suggested in yesterday’s chart analysis, the EURUSD found support around the range support area and has continued to range within the horizontal channel. The moving averages are moving sideways and are tightening – confirming the lack of trend direction. Trading opportunities could exist around the horizontal channel support and resistance and if price moves out of the channel (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. Trump’s latest speech provided no fiscal or economic stimulus details, causing the US Dollar to weaken. US Unemployment Claims data is set to be released at 1330 UTC today.
GBPUSD – 1 Hour Chart
The GBPUSD found support around the shorter-term moving average and has moved much higher (as suggested in yesterday’s chart analysis). Price is clearly up-trending. Long opportunities could exist around the bullish moving averages, around the trend support area and around the previous horizontal resistance at 1.2535. The moving averages are bullish and steady, suggesting that the GBPUSD could soon attempt another swing higher.
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. The UK Supreme Court has ruled that triggering article 50 and the Brexit negotiations will need to go through British parliament. A UK Preliminary GDP figure is set to be released at 0930 UTC today. This is followed by US Unemployment Claims data at 1330 UTC.
NZDUSD – 1 Hour Chart
As suggested in yesterday’s chart analysis, price found support around the shorter-term moving average and has been bullish. The moving averages continue to be bullish and steady, signalling that the upwards direction may continue. Long opportunities could exist around the previous horizontal resistance at 0.7270, around the dynamic support of the moving averages and around the bullish channel support area.
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. Trump’s latest speech provided no fiscal or economic stimulus details, causing the US Dollar to weaken. US Unemployment Claims data is set to be released at 1330 UTC today.
USDCAD – 1 Hour Chart
The USDCAD is lacking clear direction and is looking a little indecisive. The moving averages have crossed frequently – confirming the current lack of market direction. Trading opportunities could exist around the identified horizontal levels and around the moving averages.
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. Trump’s latest speech provided no fiscal or economic stimulus details, causing the US Dollar to weaken. US Unemployment Claims data is set to be released at 1330 UTC today.
USDCHF – 1 Hour Chart
Price is starting to look choppy and slightly indecisive. The moving averages confirm this – they are moving sideways and are tight. The USDCHF is ranging within a horizontal channel at 0.9975-1.0025. Trading opportunities could exist around the horizontal channel support and resistance and if price moves out of the channel (break-out trade).
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. Trump’s latest speech provided no fiscal or economic stimulus details, causing the US Dollar to weaken. US Unemployment Claims data is set to be released at 1330 UTC today.
USDJPY – 1 Hour Chart
The USDJPY continues to look choppy and is ranging within a horizontal channel at 112.55-115.50. Price action has formed a 2nd tighter horizontal channel at 113.10-113.90. The moving averages are crossing frequently and moving sideways – confirming the current indecision. Trading opportunities could exist around the range support and resistance areas and if the USDJPY moves out of either of the horizontal channels (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. Trump’s latest speech provided no fiscal or economic stimulus details, causing the US Dollar to weaken. US Unemployment Claims data is set to be released at 1330 UTC today.
XAUUSD – 1 Hour Chart
GOLD has found support at the range support area (as suggested in yesterday’s chart analysis). Price continues to move within a horizontal channel at 1196.10-1218.25. The moving averages confirm the current indecision – they are moving sideways and crossing frequently. Trading opportunities could exist around the range support and resistance and if price moves out of the range (break-out trade).
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