Intraday Forex Analysis – 1 Hour Charts – February 21, 2017


AUDUSD – 1 Hour Chart

AUDUSD - 21.02.2017

Price continues to move within the bullish channel and look slightly choppy. The moving averages confirm the slight indecision – they are crossing frequently and are providing no clear market direction. Buying opportunities could exist around the bullish channel support area. The AUDUSD could stall or reverse around the bullish channel 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 recently raised interest rates to 0.75%. The US Dollar could continue to strengthen long-term, as further rate hikes are expected. There is a RBA Speech at 2130 UTC today.

EURGBP – 1 Hour Chart

EURGBP - 21.02.2017

The EURGBP is looking choppy and indecisive. The moving averages are crossing frequently and are moving sideways – confirming the lack of trend direction. From a technical view, there are very few areas that could provide trading opportunities. Selling opportunities may exist around the dynamic resistance of the moving averages and around the previous diagonal 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 are UK Inflation Report Hearings at 1000 UTC today.

EURUSD – 1 Hour Chart

EURUSD - 21.02.2017

Just like other currency pairs, the EURUSD is looking indecisive and is lacking trend direction. The moving averages are moving sideways and are tight, suggesting that price could continue to consolidate. From a technical view, there are very few areas that could provide trading opportunities. Selling opportunities may exist around the dynamic resistance of the moving averages and around the diagonal resistance area.

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 recently raised 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 today that will directly impact this pair.

GBPUSD – 1 Hour Chart

GBPUSD - 21.02.2017

As suggested in yesterday’s chart analysis, price has bounced off the consolidation support and resistance areas and continues to move within the symmetrical triangle pattern. The moving averages confirm the current market indecision – they are tight and moving sideways. Trading opportunities could continue to exist around the consolidation support and resistance areas and if the GBPUSD moves out of the consolidation (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 recently raised interest rates to 0.75%. The US Dollar could continue to strengthen long-term, as further rate hikes are expected. There are UK Inflation Report Hearings at 1000 UTC today.

NZDUSD – 1 Hour Chart

NZDUSD - 21.02.2017

Price continues to range within a horizontal channel at 0.7140-0.7235 and move sideways. 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 areas and if the NZDUSD moves out of the channel (break-out trade).

New Zealand’s economy continues to seem steady, though recent unemployment data was much worse than expected. The Reserve Bank of New Zealand recently kept rates at 1.75%. The New Zealand Dollar continues to be attractive to currency investors due to the yield on carry trades. The US Federal Reserve recently raised 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 - 21.02.2017

As suggested in yesterday’s chart analysis, the USDCAD moved above the horizontal channel resistance area and has since been bullish. The moving averages are bullish and are widening, suggesting that price could uptrend and move higher. Long opportunities could exist around the previous horizontal resistance at 1.3120 and around the dynamic support of 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. The appreciation of OIL has given some strength to the Canadian Dollar, so has positive employment data. The US Federal Reserve recently raised 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 today that will directly impact this pair.

USDCHF – 1 Hour Chart

USDCHF - 21.02.2017

The USDCHF continues to find resistance around the previous bullish trend line (as suggested in yesterday’s chart analysis) but is bullish and is moving higher. The moving averages are tightening and could cross bullish, suggesting that price could move higher. Buying opportunities could exist around the dynamic support of the moving averages, around the bullish trend line and if price moves above the previous trend support area.

The US Federal Reserve recently raised 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 today that will directly impact this pair.

USDJPY – 1 Hour Chart

USDJPY - 21.02.2017

Price is looking choppy and indecisive. The moving averages are crossing frequently and are providing no clear direction – confirming the lack of trend direction. From a technical view, there are very few areas that could provide trading opportunities. Selling opportunities may exist around the potential bearish channel resistance area. Price could stall or reverse bullish around the bearish channel support 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 raised 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 today that will directly impact this pair.

XAUUSD – 1 Hour Chart

XAUUSD - 21.02.2017

GOLD continues to range within the horizontal channel at 1220.00-1242.50 and move sideways. The moving averages are crossing frequently and moving sideways – confirming the market indecision. Trading opportunities could exist around the horizontal channel support and resistance areas and if price moves out of the channel (break-out trade).