Intraday Forex Analysis – 1 Hour Charts – April 18, 2017


AUDUSD – 1 Hour Chart

AUDUSD - 18.04.2017

The AUDUSD is looking a little indecisive. From a technical view, there are very few areas that could provide trading opportunities. Price action may be forming a head and shoulder pattern. Selling opportunities could exist as the AUDUSD forms the 2nd shoulder of the pattern. Selling opportunities may also exist around the horizontal resistance at 0.7610. The moving averages are starting to tighten and move sideways – confirming the current 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. 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. A US Building Permits figure will be released at 1330 UTC today.

EURGBP – 1 Hour Chart

EURGBP - 18.04.2017

As suggested in yesterday’s chart analysis, price found resistance around the trend resistance area and the longer-term moving average and has continued to be bearish. The EURGBP is now moving within a horizontal channel at 0.8460-0.8490. Trading opportunities could exist around the horizontal channel support and resistance areas and if price moves out of the channel (break-out trade). The moving averages are bearish and are steady, suggesting that the EURGBP could move lower. Shorting opportunities could exist around the moving averages.

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. There is no major scheduled news today that will directly impact this pair.

EURUSD – 1 Hour Chart

EURUSD - 18.04.2017

Price continues to be indecisive and range between 1.0575 and 1.0680. The EURUSD is also moving within a symmetrical triangle pattern. The moving averages confirm the market indecision – they have been crossing frequently and are providing no clear direction. Trading opportunities could exist around the support and resistance areas of the symmetrical triangle and the range and if price moves out of either of these areas (break-out trades).

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. A US Building Permits figure will be released at 1330 UTC today.

GBPUSD – 1 Hour Chart

GBPUSD - 18.04.2017

As suggested in yesterday’s chart analysis, the GBPUSD has been bullish and has reversed around the bullish channel resistance area. Price continues to move within the identified bullish channel. The moving averages are bullish and are widening again, signalling that price may attempt another swing higher. Buying opportunities could exist around the dynamic support of the moving averages, around the identified diagonal support areas and around the horizontal support at 1.2500. Price may stall or reverse bearish around the bullish channel resistance area.

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 US Building Permits figure will be released at 1330 UTC today.

NZDUSD – 1 Hour Chart

NZDUSD - 18.04.2017

The NZDUSD has been finding support around the bullish channel support area and the shorter-term moving average (as suggested in yesterday’s chart analysis) and continues to move within a bullish channel. The moving averages are bullish and are steady, suggesting that the buying momentum could continue. Long opportunities may exist around the bullish channel support area, around the moving averages and around the horizontal support at 0.6985. The NZDUSD could stall or reverse 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 recently raised interest rates to 1.00%. The US Dollar could continue to strengthen long-term, as further rate hikes are expected. A US Building Permits figure will be released at 1330 UTC today. This will be followed by a New Zealand GDT Price Index figure around 1445-1515 UTC.

USDCAD – 1 Hour Chart

USDCAD - 18.04.2017

Price continues to be choppy and indecisive. The moving averages confirm this – they are moving sideways. Trading opportunities may exist around the identified horizontal levels at 1.3335, 1.3270 and 1.3225.

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 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. A US Building Permits figure will be released at 1330 UTC today.

USDCHF – 1 Hour Chart

USDCHF - 18.04.2017

The USDCHF is consolidating within a symmetrical price pattern and a horizontal channel at 1.0005-1.0060. The moving averages are tight but are bearish, suggesting that price may move lower. Trading opportunities could exist around the symmetrical triangle and horizontal channel support and resistance areas and if price moves out of these areas (break-out 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. The Swiss National Bank have kept rates at -0.75%. A US Building Permits figure will be released at 1330 UTC today.

USDJPY – 1 Hour Chart

USDJPY - 18.04.2017

Price has been retracing some of the recent bearish move and has been bullish. The bearish moving averages are tightening and are starting to move sideways. The USDJPY is above the moving averages, all signalling that price may attempt a move higher or range between the horizontal levels at 108.20 and 109.30. Trading opportunities could exist around the potential range support and resistance areas. Buying opportunities could exist around the moving averages and as the USDJPY moves above the resistance at 109.30.

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. A US Building Permits figure will be released at 1330 UTC today.

XAUUSD – 1 Hour Chart

XAUUSD - 18.04.2017

As suggested in yesterday’s chart analysis, price has started retracing some of the recent bullish move and has been bearish. GOLD has clearly formed a swing high and price is up-trending. Opportunities to go long may exist around the longer-term moving average, around the previous horizontal support at 1277.30 and around any of the key Fib levels.