Intraday Forex Analysis – 1 Hour Charts – March 22, 2017


AUDUSD – 1 Hour Chart

AUDUSD - 22.03.2017

Price has been bearish and has formed a lower swing low around 0.7655. The AUDUSD could be forming a head and shoulder reversal pattern. The moving averages confirm the change in momentum – they are tightening and may cross bearish during today’s trading sessions. Selling opportunities could exist around the bearish moving averages and if price forms the 2nd shoulder of the head and shoulder pattern. There is also a potential bearish channel. Selling opportunities may exist around the bearish channel resistance area and around the previous swing high at 0.7740.

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 raised interest rates to 1.00%. The US Dollar could continue to strengthen long-term, as further rate hikes are expected. A US Crude Oil Inventories figure will be announced at 1430 UTC today.

EURGBP – 1 Hour Chart

EURGBP - 22.03.2017

The EURGBP continues to downtrend within the bearish channel. The moving averages are bearish but are beginning to tighten, suggesting that price may soon attempt a bullish move. Opportunities to go short could exist around the previous horizontal support at 0.8660, around the dynamic resistance of the moving averages, around the bearish channel resistance area and if price moves below the bearish channel support area. Buying opportunities to go long could exist if the EURGBP moves above the bearish channel 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 has announced what deal the UK government would like as they leave the EU. The ECB have announced that the economic future of the Eurozone is looking more stable. Macron emerged as the most convincing during the recent French political debate. Overall, things are looking more positive for the Eurozone. This could continue to provide added strength. There is no major scheduled news today that will directly impact this currency pair.

EURUSD – 1 Hour Chart

EURUSD - 22.03.2017

As suggested in yesterday’s analysis, price moved above the horizontal channel and has since been bullish. The EURUSD continues to move within the bullish channel. The bullish moving averages are still tight, signalling that price may be due a bearish move towards the bullish channel support area. If the EURUSD does start retracing, opportunities to go long could exist around the horizontal levels at 1.0725 & 1.0780, around the moving averages and around the bullish channel support area.

The US Federal Reserve have raised interest rates to 1.00%. The US Dollar may continue to strengthen long-term, as further rate hikes are expected. The ECB have announced that the economic future of the Eurozone is looking more stable. Macron emerged as the most convincing during the recent French political debate. This has given strength to the Euro. Overall, things are looking more positive for the Eurozone. This could continue to provide added strength. A US Crude Oil Inventories figure will be announced at 1430 UTC today.

GBPUSD – 1 Hour Chart

GBPUSD - 22.03.2017

Price moved above the range resistance at 1.2420 and has since been very bullish (as suggested in yesterday’s chart analysis). The GBPUSD is clearly up-trending and price continues to move higher. Long opportunities could exist around the previous range resistance at 1.2420, around the dynamic support of the moving averages and around the trend support area. The moving averages are bullish and steady, signalling that the uptrend may continue.

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 raised interest rates to 1.00%. The US Dollar may continue to strengthen long-term, as further rate hikes are expected. A US Crude Oil Inventories figure will be announced at 1430 UTC today.

NZDUSD – 1 Hour Chart

NZDUSD - 22.03.2017

As suggested in yesterday’s chart analysis, the NZDUSD moved above the consolidation pattern but price quickly reversed bearish and is now looking a little choppy. The moving averages confirm the possible indecision – they are moving sideways. Price action is forming a potential bullish channel. Buying opportunities could exist around the bullish channel support area and around the longer-term moving average. A bullish move may stall or reverse around the swing high at 0.7080 and around the bullish channel resistance area.

New Zealand’s economy continues to seem steady. 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 have raised interest rates to 1.00%. The US Dollar could continue to strengthen long-term, as further rate hikes are expected. A US Crude Oil Inventories figure will be announced at 1430 UTC today. There is a Rate Announcement by the Reserve Bank of New Zealand at 2000 UTC.

USDCAD – 1 Hour Chart

USDCAD - 22.03.2017

As suggested in yesterday’s chart analysis, price was very bearish after moving below the symmetrical triangle support area and then reversed bullish around the horizontal channel support area. The USDCAD has since moved above the horizontal channel resistance and is now testing the previous resistance as support. The moving averages are bullish and are widening, suggesting that price may move higher. Buying opportunities could exist around the previous horizontal channel resistance at 1.3370 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 recent depreciation of OIL has given some weakness to the Canadian Dollar. The US Federal Reserve have raised interest rates to 1.00%. The US Dollar could continue to strengthen long-term, as further rate hikes are expected. A US Crude Oil Inventories figure will be announced at 1430 UTC today.

USDCHF – 1 Hour Chart

USDCHF - 22.03.2017

The USDCHF moved below the horizontal channel support at 0.9945 and has since been bearish (as suggested in yesterday’s chart analysis). The moving averages are bearish but are tight, signalling that price may attempt a bullish move and start retracing. Shorting opportunities could exist around the bearish moving averages and around the horizontal levels at 0.9945 & 0.9990.

The US Federal Reserve have raised interest rates to 1.00%. The US Dollar could continue to strengthen long-term, as further rate hikes are expected. The Swiss National Bank have kept rates at -0.75%. A US Crude Oil Inventories figure will be announced at 1430 UTC today.

USDJPY – 1 Hour Chart

USDJPY - 22.03.2017

As suggested in yesterday’s chart analysis, the USDJPY reversed around the bearish channel resistance area and the shorter-term moving average and has since moved lower. The moving averages are bearish and are steady, suggesting that the downtrend could continue. Shorting opportunities could exist around the previous bearish channel support and resistance areas, around the bearish moving averages and around the horizontal levels at 112.40 and 112.90.

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 returns. The US Federal Reserve have raised interest rates to 1.00%. The US Dollar could continue to strengthen long-term, as further rate hikes are expected. A US Crude Oil Inventories figure will be announced at 1430 UTC today.

XAUUSD – 1 Hour Chart

XAUUSD - 22.03.2017

As suggested in yesterday’s chart analysis, price moved above the horizontal resistance at 1235.25 and has since moved much higher. GOLD continues to be bullish. The moving averages are steady, suggesting that the uptrend may continue. If price pulls-back during today’s trading sessions, buying opportunities could exist around the dynamic support of the moving averages and around the horizontal levels at 1224.15 and 1235.25.