Intraday Forex Analysis – 1 Hour Charts – February 07, 2017


AUDUSD – 1 Hour Chart

AUDUSD - 07.02.2017

Price found support around the longer-term moving average and has since been bullish (as suggested in yesterday’s chart analysis). The AUDUSD is ranging within a horizontal channel at 0.7635-0.7695. The moving averages are bullish and steady, suggesting that price may move above the horizontal channel. Trading opportunities could exist around the range support and resistance and if the AUDUSD moves out of the range (break-out trade).

The Bank of Australia recently decided to hold rates at 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. There is no major scheduled news today that will directly impact this pair.

EURGBP – 1 Hour Chart

EURGBP - 07.02.2017

The EURGBP is moving within a horizontal channel at 0.8580-0.8640. Price action has also formed a potential bullish channel. The moving averages have been crossing frequently and providing no clear direction, suggesting market indecision. Trading opportunities could exist around the horizontal channel support and resistance and if price moves out of the channel (break-out trade). If the EURGBP breaks to the upside, price may stall or reverse around the bullish channel resistance area. If the EURGBP breaks to the downside, price may stall or reverse around the bullish channel support 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 - 07.02.2017

The EURUSD continues to look choppy and indecisive. The moving averages have been crossing frequently and providing no clear direction – confirming the current indecisive market. Trading opportunities may exist around the identified support and resistance 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, 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 - 07.02.2017

Price is ranging within a horizontal channel at 1.2510-1.2695. Trading opportunities could exist around the range support and resistance and if the GBPUSD moves out of the range (break-out trade). The moving averages confirm the current indecision – they are crossing frequently and providing no clear trend direction.

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 - 07.02.2017

As suggested in yesterday’s chart analysis, the NZDUSD found support around the moving averages and has continued within the bullish channel. The moving averages are bullish and widening, signalling that price could continue to move higher. Long opportunities may exist around the previous horizontal resistance at 0.7330, around the dynamic support of the moving averages and around the bullish channel support area.

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 GDT Price Index figure will be released around 1430-1530 UTC today.

USDCAD – 1 Hour Chart

USDCAD - 07.02.2017

The USDCAD moved above the consolidation resistance and has since been very bullish (as suggested in yesterday’s chart analysis). The moving averages are bullish and are widening, suggesting that price could start up-trending. Buying opportunities could exist around the previous horizontal resistance at 1.3120, around the bullish moving averages and around the trend support area.

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. A Canadian Trade Balance figure will be released at 1330 UTC today.

USDCHF – 1 Hour Chart

USDCHF - 07.02.2017

Price continues to 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 have recently crossed bullish and are widening, suggesting that the USDCHF could move above the consolidation resistance.

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 - 07.02.2017

As suggested in yesterday’s chart analysis, the USDJPY has been bearish and has moved below the clear horizontal support at 112.25. The moving averages continue to be bearish and are widening, signalling that the downwards direction could continue. Selling opportunities could exist around the previous horizontal support at 112.25, around the dynamic resistance of the moving averages and around the trend resistance area.

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 - 07.02.2017

GOLD continues to move within the upwards channel and be bullish (as suggested in yesterday’s chart analysis). The moving averages are bullish and are widening, signalling that the uptrend may continue. Buying opportunities could exist around the moving averages, around the previous horizontal resistance at 1224.00 and around the bullish channel support area.