Intraday Forex Analysis – 1 Hour Charts – February 01, 2017


AUDUSD – 1 Hour Chart

AUDUSD - 01.02.2017

As suggested in yesterday’s chart analysis, the AUDUSD reversed bearish around the horizontal resistance at 0.7600. Price is now ranging within a new horizontal channel at 0.7515-0.7600. The moving averages confirm the current market indecision – they are crossing frequently and moving sideways. Trading opportunities could exist around the horizontal channel support and resistance and if price moves out of the channel (break-out trade).

The Bank of Australia recently 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 Non-Farm Employment data is set to be released at 1315 UTC today. This is followed by a US Non-Manufacturing PMI figure at 1500 UTC and US Crude Oil Inventories at 1530 UTC. A Fed Statement Rate Announcement is set for 1900 UTC.

EURGBP – 1 Hour Chart

EURGBP - 01.02.2017

Price continues to be bullish and move higher. The moving averages are bullish and are widening, suggesting that the bullish move could continue. Buying opportunities could exist around the dynamic support of the moving averages, around the trend support area and if the EURGBP moves above the horizontal resistance at 0.8630.

The British Prime Minister has announced that Article 50 will be triggered by the end of March 2017. Most economists did believe that sterling would continue to weaken long-term but there now exists more optimism for the British pound. 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. UK Manufacturing PMI data is set to be released at 0930 UTC today.

EURUSD – 1 Hour Chart

EURUSD - 01.02.2017

The EURUSD has been bullish and moved higher during yesterday’s trading sessions. Price is up-trending but there seems to be some slight indecision. The moving averages have crossed bullish and are widening, signalling that price could move higher. Buying opportunities could exist around the previous swing high around 1.0760-1.0770 and around the dynamic support 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, as further rate hikes are expected. US Non-Farm Employment data is set to be released at 1315 UTC today. This is followed by a US Non-Manufacturing PMI figure at 1500 UTC and US Crude Oil Inventories at 1530 UTC. A Fed Statement Rate Announcement is set for 1900 UTC.

GBPUSD – 1 Hour Chart

GBPUSD - 01.02.2017

As suggested in yesterday’s chart analysis, price found support around the 61.8% Fib level and around the bearish channel support area and has since been bullish. The moving averages have crossed bearish though and are currently moving sideways, suggesting a lack of trend momentum. The GBPUSD could continue to be indecisive and may range between the horizontal levels at 1.2510 & 1.2660. Trading opportunities could exist around the horizontal channel support and resistance and if price moves out of the channel (break-out trade).

The British Prime Minister has announced that Article 50 will be triggered by the end of March 2017. Most economists did believe that sterling would continue to weaken long-term but there now exists more optimism for the British pound. 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 US Federal Reserve have increased interest rates to 0.75%. The US Dollar could continue to strengthen long-term, as further rate hikes are expected. UK Manufacturing PMI data is set to be released at 0930 UTC today. US Non-Farm Employment data is set to be released at 1315 UTC. This is followed by a US Non-Manufacturing PMI figure at 1500 UTC and US Crude Oil Inventories at 1530 UTC. A Fed Statement Rate Announcement is set for 1900 UTC.

NZDUSD – 1 Hour Chart

NZDUSD - 01.02.2017

Price was initially bullish during yesterday’s trading sessions but reversed bearish around the bullish channel resistance area. The moving averages are tight and moving sideways, suggesting market indecision. Trading opportunities could exist around the identified support and resistance levels. If the NZDUSD moves below the trend support and horizontal support at 0.7230, price may attempt a bearish move lower.

New Zealand’s economy continues to seem steady, though recent unemployment data was much worse than expected. The Reserve Bank of New Zealand recently cut rates by 25 points, bringing 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, as further rate hikes are expected. US Non-Farm Employment data is set to be released at 1315 UTC today. This is followed by a US Non-Manufacturing PMI figure at 1500 UTC and US Crude Oil Inventories at 1530 UTC. A Fed Statement Rate Announcement is set for 1900 UTC.

USDCAD – 1 Hour Chart

USDCAD - 01.02.2017

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. Price action has formed a potential downtrend. Selling opportunities could exist around the bearish moving averages, around the trend resistance area and around the horizontal resistance at 1.3165. A bearish move could stall or reverse around the previous swing low at 1.2990.

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. 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, as further rate hikes are expected. US Non-Farm Employment data is set to be released at 1315 UTC today. This is followed by a US Non-Manufacturing PMI figure at 1500 UTC and US Crude Oil Inventories at 1530 UTC. A Fed Statement Rate Announcement is set for 1900 UTC.

USDCHF – 1 Hour Chart

USDCHF - 01.02.2017

As suggested in yesterday’s chart analysis, the USDCHF found resistance around the previous horizontal channel support and has moved lower. The moving averages are bearish and are widening, signalling that price could continue to be bearish. Shorting opportunities could exist around the dynamic resistance of the moving averages, around the previous horizontal support at 0.9960 and around the bearish channel resistance area. Price may find support around the bearish channel support area.

The US Federal Reserve increased interest rates to 0.75%. The US Dollar could continue to strengthen long-term, as further rate hikes are expected. The Swing France may see added strength if political uncertainty in the US continues. US Non-Farm Employment data is set to be released at 1315 UTC today. This is followed by a US Non-Manufacturing PMI figure at 1500 UTC and US Crude Oil Inventories at 1530 UTC. A Fed Statement Rate Announcement is set for 1900 UTC.

USDJPY – 1 Hour Chart

USDJPY - 01.02.2017

Price continues to look choppy and slightly indecisive. The moving averages confirm this – they are crossing frequently and providing no clear direction. The USDPY may have formed a bearish channel. Selling opportunities could exist around the moving averages, around the bearish channel resistance area, around the horizontal resistance at 115.25-115.50 and if price moves below the identified horizontal support and channel support.

The Bank of Japan have kept interest rates at a low of -0.10%. The Yen may see added strength if political uncertainty in the US continues. The US Federal Reserve recently increased interest rates to 0.75%. The US Dollar could continue to strengthen long-term, as further rate hikes are expected. US Non-Farm Employment data is set to be released at 1315 UTC today. This is followed by a US Non-Manufacturing PMI figure at 1500 UTC and US Crude Oil Inventories at 1530 UTC. A Fed Statement Rate Announcement is set for 1900 UTC.

XAUUSD – 1 Hour Chart

XAUUSD - 01.02.2017

GOLD is looking choppy and indecisive. The moving averages confirm this – they are crossing frequently and providing no clear direction. Price is ranging between the horizontal levels at 1180.60-1218.40. Trading opportunities could exist around the horizontal channel support and resistance and if price moves out of the channel (break-out trade).