Intraday Forex Analysis – 1 Hour Charts – March 23, 2017


AUDUSD – 1 Hour Chart

AUDUSD - 23.03.2017

The AUDUSD has been bearish and has formed a lower swing low around 0.7655. Price could be forming a head and shoulder reversal pattern. The moving averages confirm the change in momentum – they have crossed bearish and are widening (as suggested in yesterday’s chart analysis). Shorting opportunities could exist around the bearish moving averages and as price action forms the 2nd shoulder of the head and shoulder pattern. There is also a potential bearish channel. Shorting 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. US Unemployment Claims data will be announced at 1230 UTC today. This is followed by a Fed Chair Speech at 1245 UTC.

EURGBP – 1 Hour Chart

EURGBP - 23.03.2017

As suggested in yesterday’s chart analysis, price attempted a bullish move and reversed bearish around the longer-term moving average. The EURGBP continues to move within a bearish channel and downtrend. The moving averages are bearish and are widening, suggesting that price may move lower. Selling opportunities could exist around the dynamic resistance of the moving averages, around the previous horizontal support at 0.8650 and around 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. A UK Retail Sales figure will be released at 0930 UTC today.

EURUSD – 1 Hour Chart

EURUSD - 23.03.2017

Price has found support around the previous horizontal resistance at 1.0780 (as suggested in yesterday’s chart analysis) and is now ranging within a horizontal channel at 1.0785-1.0820. Trading opportunities could exist around the range support and resistance areas and if the EURUSD moves out of the range (break-out trade). If price breaks to the downside, the EURUSD may stall or reverse around the bullish channel support area. The moving averages are bullish and are widening, signalling that price could move higher. Buying opportunities may exist around the bullish moving averages.

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. US Unemployment Claims data will be announced at 1230 UTC today. This is followed by a Fed Chair Speech at 1245 UTC.

GBPUSD – 1 Hour Chart

GBPUSD - 23.03.2017

As suggested in yesterday’s chart analysis, the GBPUSD found support around the shorter-term moving average and has since moved higher. Price is clearly up-trending and price action has formed a series of higher swing highs and higher swing lows. The moving averages are bullish and are widening, suggesting that the GBPUSD may attempt another swing higher. Buying opportunities could exist around the moving averages, around the trend support area and around the horizontal level at 1.2420.

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 UK Retail Sales figure will be released at 0930 UTC today. US Unemployment Claims data will be announced at 1230 UTC. This is followed by a Fed Chair Speech at 1245 UTC.

NZDUSD – 1 Hour Chart

NZDUSD - 23.03.2017

The NZDUSD continues to be slightly choppy. Price action has formed a symmetrical triangle consolidation pattern. The moving averages confirm the current market indecision – they are tight and moving sideways. Trading opportunities may exist around the symmetrical triangle support and resistance and if the NZDUSD moves out of the pattern (break-out trade). Price could stall or reverse around the bearish channel support and resistance areas.

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. US Unemployment Claims data will be announced at 1230 UTC today. This is followed by a Fed Chair Speech at 1245 UTC.

USDCAD – 1 Hour Chart

USDCAD - 23.03.2017

As suggested in yesterday’s chart analysis, price was bullish off the previous channel resistance area at 1.3370, but the USDCAD has since reversed and moved lower. Price is looking indecisive. The moving averages confirm this – they are tight and moving sideways. Long opportunities could exist around the identified horizontal support at 1.3280 and if price moves above the horizontal resistance at 1.3400. Short opportunities could exist around the horizontal resistance at 1.3400 and if the USDCAD moves below the horizontal support at 1.3280.

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. US Unemployment Claims data will be announced at 1230 UTC today. This is followed by a Fed Chair Speech at 1245 UTC.

USDCHF – 1 Hour Chart

USDCHF - 23.03.2017

The USDCHF continues to downtrend and be bearish. The moving averages are bearish and are widening, signalling that price may continue to move lower. Opportunities to go short could exist around the dynamic resistance of the moving averages and around the previous horizontal support levels at 0.9945 and 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%. US Unemployment Claims data will be announced at 1230 UTC today. This is followed by a Fed Chair Speech at 1245 UTC.

USDJPY – 1 Hour Chart

USDJPY - 23.03.2017

Price has been bullish and has been retracing some of the recent bearish swing. The moving averages are bearish and are widening, suggesting that the downtrend could continue. The USDJPY is looking a little over-extended though, signalling that the retracement could yet move higher. Shorting opportunities could exist around the previous bearish channel support area, around the bearish moving averages and around the previous horizontal support at 112.35.

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. US Unemployment Claims data will be announced at 1230 UTC today. This is followed by a Fed Chair Speech at 1245 UTC.

XAUUSD – 1 Hour Chart

XAUUSD - 23.03.2017

As suggested in yesterday’s chart analysis, GOLD continues to uptrend and the bullish move has continued. If price pulls-back during today’s trading sessions, buying opportunities could exist around the dynamic support of the moving averages, around the trend support area and around the previous horizontal resistance at 1235.25.