Inter-day Forex Analysis – Daily Charts – April 05, 2017


AUDUSD – Daily Chart

AUDUSD - 05.04.2017 - Daily

The AUDUSD is looking choppy and indecisive. The moving averages confirm the market indecision – they have been crossing frequently and have been providing no clear marker direction. Price action has formed a horizontal channel at 0.7500-0.7730. Trading opportunities could exist around the horizontal channel support and resistance areas and if price moves out of the channel (break-out trade).

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. 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.

EURGBP – Daily Chart

EURGBP - 05.04.2017 - Daily

As suggested in the last inter-day chart analysis, price continues to range between the horizontal levels at 0.8355 and 0.8830 and move off the support and resistance levels. Price action has now also formed a symmetrical triangle consolidation pattern. Trading opportunities may exist around the support and resistance of the symmetrical triangle and the range. Trading opportunities could also exist if the EURGBP moves out of either consolidation patterns (break-out trade).

Article 50 has been triggered – the UK has started negotiations on leaving the European Union. Most economists did believe that sterling would continue to weaken long-term but there now exists more optimism for the British pound. The ECB have announced that the economic future of the Eurozone is looking more stable. There are some concerns though that the UK leaving the EU may weaken the European economy and weaken the Euro.

EURUSD – Daily Chart

EURUSD - 05.04.2017 - Daily

Price action has formed a bullish channel and has also formed a higher swing high at 1.0865, suggesting that the EURUSD may attempt a bullish move higher. The moving averages confirm this – they have crossed bullish. Buying opportunities could exist around the dynamic support of the moving averages and around the bullish channel support area. Price may stall or reverse around the horizontal resistance at 1.0865 and around the bullish channel resistance area.

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. There are some concerns though that the UK leaving the EU may weaken the European economy and weaken the Euro.

GBPUSD – Daily Chart

GBPUSD - 05.04.2017 - Daily

As suggested in our last inter-day chart analysis, the GBPUSD continues to range and has been moving off the horizontal levels at 1.2000 and 1.2735. Price action has also formed a symmetrical triangle consolidation pattern. Trading opportunities may exist around the support and resistance of the symmetrical triangle and the range. Trading opportunities could also exist if price moves out of either consolidation patterns (break-out trade).

Article 50 has been triggered – the UK has started negotiations on leaving the European Union. Most economists did believe that sterling would continue to weaken long-term but there now exists more optimism for the British pound. 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.

NZDUSD – 1 Hour Chart

NZDUSD - 05.04.2017 - Daily

Just like a lot of Forex pairs, the NZDUSD is consolidating. Price action has formed a symmetrical triangle price pattern and the NZDUSD is moving within the pattern. The moving averages confirm the market indecision – they have been crossing frequently and are moving sideways. Trading opportunities could exist around the symmetrical triangle support and resistance areas and if price moves out of the pattern (break-out trade). If price breaks to the upside, the NZDUSD may stall or reverse around the horizontal resistance at 0.7380.

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.

USDCAD – Daily Chart

USDCAD - 05.04.2017 - Daily

The USDCAD is moving within a horizontal channel at 1.3015-1.3575. The moving averages confirm the current indecision – they are tight and are moving sideways. Trading opportunities could exist around the horizontal channel support and resistance areas and if price moves out of the channel (break-out trade).

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.