Intraday Forex Analysis – 1 Hour Charts – January 27, 2017


AUDUSD – 1 Hour Chart

AUDUSD - 27.01.2017

Price continues to range within the horizontal channel at 0.7515-0.7600. Recent price action has been bearish though and the moving averages have crossed bearish, suggesting that the AUDUSD may move lower. Selling opportunities could exist around the dynamic resistance of the moving averages, around the trend resistance area and if price moves below the horizontal support at 0.7515.

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. A US Advance GDP figure will be announced at 1330 UTC today. Durable Goods Orders data will be released at the same time.

EURGBP – 1 Hour Chart

EURGBP - 27.01.2017

As suggested in yesterday’s chart analysis, the EURGBP quickly reversed bearish around the shorter-term moving average and around the 23.6% Fib level. Price is now retracing and is bullish. The moving averages are bearish and are steady, suggesting that the EURGBP could attempt a swing lower. Shorting opportunities could exist around any of the key Fib levels, around the bearish moving averages and around the horizontal resistance 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. There is no major scheduled news that will directly impact this pair during today’s trading sessions.

EURUSD – 1 Hour Chart

EURUSD - 27.01.2017

The EURUSD moved below the horizontal channel support area and has since been bearish (as suggested in yesterday’s chart analysis). The moving averages have crossed bearish and are widening, signalling that the bearish move could continue. Selling opportunities could exist around the previous horizontal channel support at 1.0710 and around the dynamic resistance of 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. Trump’s latest speech provided no fiscal or economic stimulus details, causing the US Dollar to weaken. A US Advance GDP figure will be announced at 1330 UTC today. Durable Goods Orders data will be released at the same time.

GBPUSD – 1 Hour Chart

GBPUSD - 27.01.2017

Price found some support around the trend support area but has since been bearish and has moved below the trend support area. The moving averages are bullish and steady, suggesting that the uptrend may continue. The GBPUSD is below both moving averages though, signalling that future price could be bearish. Buying opportunities could exist around the previous horizontal resistance at 1.2535.

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 US Advance GDP figure will be announced at 1330 UTC today. Durable Goods Orders data will be released at the same time.

NZDUSD – 1 Hour Chart

NZDUSD - 27.01.2017

The NZDUSD is forming a potential head and shoulder pattern. The bullish moving averages are moving sideways and tightening, suggesting that price could become bearish or that the NZDUSD could start ranging. If price is going to move lower, selling opportunities could exist as price moves below the head and shoulder neckline and horizontal support at 0.7230. If price is going to range, trading opportunities could exist around the horizontal channel support and resistance at 0.7230-0.7300.

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. A US Advance GDP figure will be announced at 1330 UTC today. Durable Goods Orders data will be released at the same time.

USDCAD – 1 Hour Chart

USDCAD - 27.01.2017

Price 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 support and resistance areas 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. A US Advance GDP figure will be announced at 1330 UTC today. Durable Goods Orders data will be released at the same time.

USDCHF – 1 Hour Chart

USDCHF - 27.01.2017

As suggested in yesterday’s chart analysis, the USDCHF was rejected around the horizontal channel support and resistance levels and continues to range. Trading opportunities could exist around the horizontal channel support and resistance at 0.9975-1.0025 and if price moves out of the channel (break-out trade). The moving averages are tight and moving sideways – confirming the current lack of momentum.

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. A US Advance GDP figure will be announced at 1330 UTC today. Durable Goods Orders data will be released at the same time.

USDJPY – 1 Hour Chart

USDJPY - 27.01.2017

The USDJPY continues to look choppy and is ranging within a horizontal channel at 112.55-115.50. Price moved above the tighter horizontal channel and has since been bullish (as suggested in yesterday’s chart analysis). 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 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. Trump’s latest speech provided no fiscal or economic stimulus details, causing the US Dollar to weaken. A US Advance GDP figure will be announced at 1330 UTC today. Durable Goods Orders data will be released at the same time.

XAUUSD – 1 Hour Chart

XAUUSD - 27.01.2017

As suggested in yesterday’s chart analysis, price moved below the horizontal support at 1196.00 and has since been bearish. The moving averages are bearish and are widening, suggesting that the downtrend could continue. Selling opportunities could exist around the dynamic resistance of the moving averages and around the previous horizontal support level.