Intraday Forex Analysis – 1 Hour Charts – February 08, 2017
AUDUSD – 1 Hour Chart
The AUDUSD moved below the horizontal support at 0.7635 during yesterday’s trading sessions and is currently testing the area as resistance. The moving averages have crossed bearish and are widening, suggesting that price could move lower. Selling opportunities may exist around the previous horizontal support at 0.7635, around the dynamic resistance of the moving averages and around the diagonal resistance area.
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. US Crude Oil Inventories are set to be released at 1530 UTC today.
EURGBP – 1 Hour Chart
As suggested in yesterday’s chart analysis, price moved below the horizontal channel support area and is nearing the bullish channel support. Buying opportunities could exist around the support area. A bullish move could stall or reverse around the moving averages and around the horizontal resistance at 0.8640. The moving averages are crossing frequently and are moving sideways, suggesting that the EURGBP is currently indecisive.
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
Price continues to look choppy and indecisive. The moving averages have been crossing frequently and providing no clear direction – confirming the current indecisive market. Price action has formed a symmetrical triangle pattern. Trading opportunities may exist around the identified support and resistance and around the moving averages. Trading opportunities may also exist if the EURUSD moves out of the symmetrical triangle pattern (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, as further rate hikes are expected. US Crude Oil Inventories are set to be released at 1530 UTC today.
GBPUSD – 1 Hour Chart
The GBPUSD continues to be choppy and indecisive. The moving averages confirm the current indecision – they are crossing frequently and providing no clear trend direction. Trading opportunities could exist around the identified support and resistance areas and around the moving averages.
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. US Crude Oil Inventories are set to be released at 1530 UTC today.
NZDUSD – 1 Hour Chart
Price has reversed bearish and has moved below the bullish channel support area. The moving averages are tightening and could cross bearish during today’s trading sessions, signalling that the NZDUSD may move lower. Shorting opportunities could exist around the previous bullish channel support, around the bearish moving averages and around the previous horizontal support at 0.7290.
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 Crude Oil Inventories are set to be released at 1530 UTC today. There is a New Zealand Rate Announcement at 2000 UTC. This is followed by a RBNZ Press Conference at 2100 UTC and a speech at 0010 UTC.
USDCAD – 1 Hour Chart
As suggested in yesterday’s chart analysis, the USDCAD has been bullish and has formed a higher swing high. The moving averages are bullish and are widening, suggesting that the uptrend could continue. Long opportunities could exist around the dynamic support of the moving averages and around the previous horizontal resistance at 1.3120. Price may find resistance around the potential bullish channel resistance 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. US Crude Oil Inventories are set to be released at 1530 UTC today.
USDCHF – 1 Hour Chart
As suggested in yesterday’s chart analysis, the USDCHF moved above the consolidation resistance area and has been bullish. The moving averages are bullish and are steady, signalling that price could continue to move higher. Buying opportunities may exist around the bullish moving averages and around the bullish channel support area. Price could stall or reverse bearish around the bullish channel resistance 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 Crude Oil Inventories are set to be released at 1530 UTC today.
USDJPY – 1 Hour Chart
The USDJPY found resistance around the trend resistance area and the longer-term moving average and attempted a move lower (as suggested in yesterday’s chart analysis). The bearish move quickly reversed though and price is back at the trend resistance and longer-term moving average. The moving averages are bearish and are steady, suggesting that the USDJPY may attempt another bearish move. Shorting opportunities could exist around the moving averages and around the trend resistance area. A bearish move could stall or reverse bullish around the diagonal support area. If price moves above the moving averages and the trend resistance, the USDJPY could attempt a bullish move higher.
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 Crude Oil Inventories are set to be released at 1530 UTC today.
XAUUSD – 1 Hour Chart
GOLD continues to move within the bullish channel. Price action has formed a horizontal channel – within the bullish channel – at 1228.90-1235.30. Trading opportunities could exist around the horizontal channel support and resistance and if price moves out of the horizontal channel (break-out trade). Buying opportunities could exist around the bullish channel support area, around the moving averages and around the previous horizontal resistance at 1223.90.
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