Intraday Forex Analysis – 1 Hour Charts – February 06, 2017


AUDUSD – 1 Hour Chart

AUDUSD - 06.02.2017

As suggested in Friday’s chart analysis, the AUDUSD found support around the 38.2% Fib level and the shorter-term moving average and was bullish. Price failed to form a higher swing high though. Then moving averages are still bullish and are steady, suggesting that the AUDUSD could attempt another bullish move. Buying opportunities could exist around the bullish moving averages and around the previous range resistance at 0.7600. A bullish move may stall or reverse around the horizontal resistance at 0.7695.

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. The Reserve Bank of Australia will announce rates and provide a rate statement at 0330 UTC.

EURGBP – 1 Hour Chart

EURGBP - 06.02.2017

Price has moved above the symmetrical triangle pattern and has been bullish. The moving averages have crossed bullish and are widening, suggesting that the bullish move could continue. Long opportunities may exist around the previous symmetrical triangle resistance (as support), around the dynamic support of the moving averages and around the symmetrical triangle support area. The EURGBP could stall or reverse around the horizontal resistance at 0.8650. A buying opportunity could exist if price moves above this resistance area.

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. There is no major scheduled news that will directly impact this pair during today’s trading sessions.

EURUSD – 1 Hour Chart

EURUSD - 06.02.2017

The EURUSD continues to look choppy and indecisive. Price has found support around the 1.0730 area (as suggested in Friday’s chart analysis). The moving averages are tight and providing no clear direction – confirming the current indecisive market. Trading opportunities may exist around the identified horizontal levels.

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. There is no major scheduled news that will directly impact this pair during today’s trading sessions.

GBPUSD – 1 Hour Chart

GBPUSD - 06.02.2017

Price has been finding support around the trend support area (identified in Friday’s chart analysis) but the GBPUSD continues to look indecisive and could still range within the horizontal channel at 1.2410-1.2695. The moving averages confirm this – they are crossing frequently and moving sideways. Trading opportunities could exist around the trend support area and around the horizontal channel support and resistance areas. Trading opportunities could also exist if the GBPUSD moves out of the horizontal 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. There is no major scheduled news that will directly impact this pair during today’s trading sessions.

NZDUSD – 1 Hour Chart

NZDUSD - 06.02.2017

As identified in Friday’s chart analysis, price found support around the bullish channel/consolidation support area and has since been bullish. The NZDUSD continues to look choppy though and is currently lacking trend direction. Trading opportunities may exist around the horizontal levels and around the moving averages. Buying opportunities could exist around the bullish channel support area and if price moves above the horizontal resistance levels at 0.7325 and 0.7345.

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. A New Zealand Inflation Expectation figure will be released at 0200 UTC.

USDCAD – 1 Hour Chart

USDCAD - 06.02.2017

The USDCAD has reversed bearish around the trend resistance area and the longer-term moving average (as suggested in Friday’s chart analysis). Price action has formed a symmetrical triangle pattern and the USDCAD is consolidating. Trading opportunities could exist around the consolidation support and resistance and if price moves out of the consolidation (break-out trade).

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. There is no major scheduled news that will directly impact this pair during today’s trading sessions.

USDCHF – 1 Hour Chart

USDCHF - 06.02.2017

As suggested in Friday’s chart analysis, price was rejected around the trend resistance area and the horizontal resistance at 0.9960 and has since been bearish. The USDCHF could now consolidate within the identified symmetrical triangle price pattern. Trading opportunities could exist around the consolidation support and resistance and if price moves out of the pattern (break-out trade). The moving averages are tight and moving sideways – confirming the market indecision.

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. There is no major scheduled news that will directly impact this pair during today’s trading sessions.

USDJPY – 1 Hour Chart

USDJPY - 06.02.2017

Price found support again around the horizontal support at 112.25. The USDJPY continues to look choppy and slightly indecisive. The moving averages confirm the market indecision but they recently crossed bearish and are steady, signalling that price could move lower. Selling opportunities could exist around the moving averages and around the identified diagonal resistance. Selling opportunities could also exist if price moves below the horizontal support at 112.25.

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. There is no major scheduled news that will directly impact this pair during today’s trading sessions.

XAUUSD – 1 Hour Chart

XAUUSD - 06.02.2017

As suggested in Friday’s chart analysis, GOLD found support around the bullish channel support area and the previous horizontal resistance at 1213.00 and has since been bullish. Price was also rejected at the longer-term moving average. The moving averages are bullish and are steady, suggesting that GOLD could continue to move higher. Buying opportunities may exist around the dynamic support of the moving averages, around the bullish channel support area and around the horizontal support at 1211.90. There is a possibility that price may reverse bearish and start ranging within the horizontal channel at 1211.90-1223.90.