Intraday Forex Analysis – 1 Hour Charts – February 27, 2017

AUDUSD – 1 Hour Chart

The AUDUSD has found support around the bullish channel support area again (as identified in Friday’s chart analysis). Price continues to be choppy and slightly indecisive. The moving averages confirm this – they have been crossing frequently and are moving sideways. Trading opportunities could exist around the bullish channel support and resistance areas. If the AUDUSD moves below the trend support area, price may attempt a bearish move lower.

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. A US Core Durable Goods Orders figure will be released at 1330 UTC today.

EURGBP – 1 Hour Chart

Price has been bullish and has moved higher. The bearish moving averages are tightening and may cross bullish, signalling that the EURGBP could possibly start up-trending. Long opportunities could exist around the bullish moving averages, around the previous swing high at 0.8490 and around the trend 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

As suggested in yesterday’s chart analysis, the EURUSD reversed around the 61.8% Fib level and has been bearish. Price is struggling to move lower though and is looking slightly indecisive. The moving averages confirm this – they are moving sideways. Trading opportunities may exist around the bearish channel support and resistance areas.

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. A US Core Durable Goods Orders figure will be released at 1330 UTC today.

GBPUSD – 1 Hour Chart

The GBPUSD has been very bearish but overall price action continues to look indecisive. Price has been moving within a horizontal channel at 1.2395-1.2570 and the GBPUSD is currently testing the horizontal channel support area. Selling opportunities may exist if price moves below the range support area, around the previous diagonal support area and around the dynamic resistance of the moving averages. There could be buying opportunities if the range support area holds.

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. A US Core Durable Goods Orders figure will be released at 1330 UTC today.

NZDUSD – 1 Hour Chart

As suggested in Friday’s chart analysis, price has reversed bearish around the range resistance area but has found support around the longer-term moving average. The NZDUSD continues to range between the horizontal levels at 0.7130-0.7235. The moving averages confirm the current lack of trend direction – they are crossing frequently and moving sideways. Trading opportunities may exist around the range support and resistance areas and if price moves out of the range.

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 US Core Durable Goods Orders figure will be released at 1330 UTC today.

USDCAD – 1 Hour Chart

Just like many currency pairs, the USDCAD is indecisive and is moving within a horizontal channel (1.3025-1.3200). The moving averages are crossing frequently and moving sideways – confirming the current indecision. Trading opportunities could exist around the horizontal channel support and resistance areas.

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. A US Core Durable Goods Orders figure will be released at 1330 UTC today.

USDCHF – 1 Hour Chart

As suggested in Friday’s chart analysis, price found support around the 61.8% Fib level and has since been bullish. Price continues to move within the bullish channel and may move higher but the moving averages have crossed bearish and are widening, suggesting that the USDCHF could attempt a move to the bullish channel support area. Opportunities to go long could exist around the bullish channel support area. Price may stall or reverse bearish around the bullish channel resistance 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. A US Core Durable Goods Orders figure will be released at 1330 UTC today.

USDJPY – 1 Hour Chart

The USDJPY has been bearish and has moved lower (as suggested in Friday’s chart analysis). The moving averages are bearish and are widening, signalling that price may continue to be bearish. Price continues to move within a bearish channel and downtrend. Shorting opportunities could exist around the bearish moving averages, around the previous horizontal support levels at 112.60 and 113.00 and around the trend resistance area. The USDJPY 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. A US Core Durable Goods Orders figure will be released at 1330 UTC today.

XAUUSD – 1 Hour Chart

GOLD has started to retrace some of the recent bullish move. The moving averages are bullish and are widening, suggesting that price could continue to uptrend. Buying opportunities may exist around the dynamic support of the moving averages, around any of the key Fib levels, around the previous horizontal resistance levels at 1238.75 and 1242.65 and around the trend support area.

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