Intraday Forex Analysis – 1 Hour Charts – April 07, 2017


AUDUSD – 1 Hour Chart

AUDUSD - 07.04.2017

As suggested in yesterday’s chart analysis, price has continued to be bearish and has been finding support around the bullish channel support area. Price action has formed a tightening consolidation pattern within the bearish channel. The moving averages are bearish and are steady, suggesting that the AUDUSD may move lower. Price may move off the bearish channel support area though and attempt a move towards the bearish channel resistance area. Selling opportunities could exist around the moving averages and around the consolidation resistance area.

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. US Average Hourly Earnings, Non-Farm Employment Change and Unemployment data will be released at 1330 UTC today. The Non-Farm Employment Change figure is likely to cause a lot of market volatility.

EURGBP – 1 Hour Chart

EURGBP - 07.04.2017

The EURGBP continues to be indecisive  and choppy. The moving averages confirm the current indecision – they are crossing frequently and moving sideways. Price is ranging within a horizontal channel at 0.8525-0.8560. Trading opportunities could exist around the horizontal channel support and resistance areas and if price moves out of the horizontal channel (break-out trade). If the EURGBP breaks to the upside, price may stall or reverse around the horizontal resistance at 0.8590.

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. A UK Manufacturing Production figure will be announced at 0930 UTC today. This is followed by a Bank of England Speech at 1000 UTC. The US Non-Farm Employment change figure at 1330 UTC will likely cause volatility on non-USD pairs, as well as USD pairs.

EURUSD – 1 Hour Chart

EURUSD - 07.04.2017

As suggested in yesterday’s chart analysis, the EURUSD has come off the range support and resistance levels and continues to move within the horizontal channel at 1.0640-1.0680. Trading opportunities could exist around the range support and resistance areas and if price moves out of the range (break-out trade). The moving averages confirm the current indecision – they are tight and are moving sideways.

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. US Average Hourly Earnings, Non-Farm Employment Change and Unemployment data will be released at 1330 UTC today. The Non-Farm Employment Change figure is likely to cause a lot of market volatility.

GBPUSD – 1 Hour Chart

GBPUSD - 07.04.2017

Price action has formed a tighter horizontal channel at 1.2455-1.2495 and a symmetrical triangle pattern. The GBPUSD continues to be indecisive. Trading opportunities could exist around the horizontal channel support and resistance areas and if the GBPUSD moves out of the range (break-out trade). A larger horizontal channel exists at 1.2400-1.2550. Trading opportunities could exist around these horizontal levels too and the support and resistance of the symmetrical triangle. The moving averages are tight and moving sideways – confirming the current indecision.

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. A UK Manufacturing Production figure will be announced at 0930 UTC today. This is followed by a Bank of England Speech at 1000 UTC. US Average Hourly Earnings, Non-Farm Employment Change and Unemployment data will be released at 1330 UTC. The Non-Farm Employment Change figure is likely to cause a lot of market volatility.

NZDUSD – 1 Hour Chart

NZDUSD - 07.04.2017

As suggested in yesterday’s chart analysis, price has been finding resistance around the longer-term moving average and the horizontal resistance at 0.6980 and continues to move within the bearish channel. The moving averages are bearish and are steady, signalling that price may continue to be bearish. Shorting opportunities could exist around the identified horizontal resistance level, around the longer-term moving average and around the bearish 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 recently raised interest rates to 1.00%. The US Dollar could continue to strengthen long-term, as further rate hikes are expected. US Average Hourly Earnings, Non-Farm Employment Change and Unemployment data will be released at 1330 UTC today. The Non-Farm Employment Change figure is likely to cause a lot of market volatility.

USDCAD – 1 Hour Chart

USDCAD - 07.04.2017

The USDCAD continues to range between the horizontal levels at 1.3375 and 1.3455. Price action has formed a symmetrical triangle price pattern. Trading opportunities could exist around the symmetrical triangle support and resistance areas and around the horizontal channel support and resistance areas. Trading opportunities may also exist if price moves out of the pattern and channel (break-out trade). The moving averages are bullish and steady, signalling that the USDCAD could be bullish during today’s trading sessions.

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 Average Hourly Earnings, Non-Farm Employment Change and Unemployment data will be released at 1330 UTC today. The Non-Farm Employment Change figure is likely to cause a lot of market volatility. Canadian Employment data will be released at the same time.

USDCHF – 1 Hour Chart

USDCHF - 07.04.2017

Just like may USD pairs, the USDCHF is consolidating within a horizontal channel and a symmetrical triangle pattern. Trading opportunities could exist around the range support and resistance areas (1.0030-1.0055) and also around the support and resistance of the symmetrical triangle pattern. Trading opportunities could also exist if the USDCHF moves out of the horizontal channel or horizontal channel (break-out trade). The moving averages are bullish and are steady, suggesting that the USDCHF could move higher.

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 Average Hourly Earnings, Non-Farm Employment Change and Unemployment data will be released at 1330 UTC today. The Non-Farm Employment Change figure is likely to cause a lot of market volatility.

USDJPY – 1 Hour Chart

USDJPY - 07.04.2017

As suggested in yesterday’s chart analysis, price has reversed bullish around the horizontal channel support area. The USDJPY continues to move within the horizontal channel at 110.15-112.10. The moving averages are bearish and price action has formed a diagonal resistance, all suggesting that the USDJPY may move lower. Opportunities to go short could exist around the moving averages, around the diagonal resistance area and if price moves below the horizontal 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 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 Average Hourly Earnings, Non-Farm Employment Change and Unemployment data will be released at 1330 UTC today. The Non-Farm Employment Change figure is likely to cause a lot of market volatility.

XAUUSD – 1 Hour Chart

XAUUSD - 07.04.2017

As suggested in yesterday’s chart analysis, GOLD moved above the symmetrical triangle resistance area and has since moved much higher. Price is now above the recent horizontal channel and the moving averages are bullish, both signalling that GOLD may start trending higher. Buying opportunities could exist around the previous horizontal resistance at 1260.10, around the bullish moving averages and around the trend support area (previous symmetrical triangle support).