Intraday Forex Analysis – 1 Hour Charts – March 29, 2017

AUDUSD – 1 Hour Chart

As suggested in yesterday’s chart analysis, the AUDUSD broke to the downside of the recent horizontal channel support area but price then quickly reversed. Price action has formed a new wider horizontal channel at 0.7590-0.7650. Trading opportunities could exist around the horizontal channel support and resistance areas and if the AUDUSD moves out of the channel (break-out trade). The moving averages are tight and moving sideways – confirming the current market indecision.

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 1.00%. The US Dollar could continue to strengthen long-term, as further rate hikes are expected. US Crude Oil Inventories data is set to be released at 1530 UTC today.

EURGBP – 1 Hour Chart

The EURGBP moved above the recent bearish channel resistance area and has since been bullish (as suggested in yesterday’s chart analysis). The moving averages are bullish and are widening. Price has moved above some recent key swing highs – suggesting that the EURGBP may uptrend. If price pulls-back during today’s trading sessions, buying opportunities could exist around the previous horizontal resistance levels at 0.8670 and 0.8690, around the bullish moving averages and around any of the key Fib levels.

The British Prime Minister has announced that Article 50 will be triggered on the 29 March (today). 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 when 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 pair.

EURUSD – 1 Hour Chart

Price has been bearish and has moved below the recent bullish channel support area. The moving averages are moving sideways and becoming more bearish, signaling that buying momentum is currently weak. The EURUSD may start ranging or possibly consolidate between the identified triangle price pattern. Trading opportunities could exist around any of the key support and resistance areas and if the EURUSD moves out of either the triangle or horizontal channel patterns (break-out trade).

The US Federal Reserve recently 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 Crude Oil Inventories data is set to be released at 1530 UTC today.

GBPUSD – 1 Hour Chart

The GBPUSD has been bearish. Price has moved below the moving averages and below key support areas, suggesting that the GBPUSD is in a long-term retracement. Opportunities to go long could exist around the 50.0% and 61.8% Fib levels and around the horizontal support at 1.2335. If price is going to continue to move lower, opportunities to go short could exist around the identified horizontal levels at 1.2435 and 1.2470.

The British Prime Minister has announced that Article 50 will be triggered on the 29 March (today). 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 when leave the EU. This has given strength to the GBP. The US Federal Reserve recently raised interest rates to 1.00%. The US Dollar may continue to strengthen long-term, as further rate hikes are expected. US Crude Oil Inventories data is set to be released at 1530 UTC today.

NZDUSD – 1 Hour Chart

Price continues to range within a horizontal channel at 0.6995-0.7070. The moving averages confirm the current market indecision – they are tight and are crossing frequently. Trading opportunities may exist around the range support and resistance areas and if the NZDUSD moves out of the range (break-out trade).

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 recently raised interest rates to 1.00%. The US Dollar could continue to strengthen long-term, as further rate hikes are expected. US Crude Oil Inventories data is set to be released at 1530 UTC today.

USDCAD – 1 Hour Chart

As suggested in yesterday’s chart analysis, price reversed around the horizontal channel resistance area and continues to range within the horizontal channel at 1.3320-1.3410. Trading opportunities could exist around the range support and resistance areas and if the USDCAD moves out of the horizontal channel (break-out trade). The moving averages are bullish and are widening, suggesting that price may be bullish.

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 caused weakness to the Canadian Dollar. The US Federal Reserve recently raised interest rates to 1.00%. The US Dollar could continue to strengthen long-term, as further rate hikes are expected. US Crude Oil Inventories data is set to be released at 1530 UTC today.

USDCHF – 1 Hour Chart

The USDCHF was being rejected around the trend resistance area but price is now moving above the trend resistance. The moving averages are starting to tighten and become more bullish, signaling that selling momentum could be weakening. The USDCHF may now range between 0.9825 and 0.9960 or attempt a bullish run. Trading opportunities could exist around the potential range support and resistance areas. Buying opportunities could exist around the previous trend resistance area (as support) and around the moving averages.

The US Federal Reserve recently 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 Crude Oil Inventories data is set to be released at 1530 UTC today.

USDJPY – 1 Hour Chart

As suggested in yesterday’s chart analysis, the USDJPY reversed around the previous swing low at 110.15. Price has since been bullish. Price action has formed a horizontal channel at 110.15-111.50. Trading opportunities may exist around the horizontal channel support and resistance areas and if the USDJPY moves out of the channel (break-out trade).

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 recently raised interest rates to 1.00%. The US Dollar could continue to strengthen long-term, as further rate hikes are expected. US Crude Oil Inventories data is set to be released at 1530 UTC today.

XAUUSD – 1 Hour Chart

As suggested in yesterday’s chart analysis, price has reversed around the previous swing high at 1258.50. GOLD has since been bullish. Price is now ranging between the horizontal levels at 1242.20 and 1258.50. Trading opportunities could exist around the range support and resistance areas and if GOLD moves out of the channel (break-out trade).

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