Intraday Forex Analysis – 1 Hour Charts – April 20, 2017
AUDUSD – 1 Hour Chart
As suggested in yesterday’s chart analysis, the AUDUSD has continued to be bearish and has moved lower. Price continues to range between the horizontal levels at 0.7475 and 0.7610. The moving averages are bearish and are widening, suggesting that the AUDUSD may attempt another bearish move. Buying opportunities could exist around the horizontal support at 0.7475. Selling opportunities could exist around the bearish moving averages.
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 Manufacturing and Unemployment data will be announced at 1330 UTC. This is followed by a US Treasury Speech at 1815 UTC.
EURGBP – 1 Hour Chart
Price has reversed bearish around the shorter-term moving average and around the 38.2% Fib level (as suggested in yesterday’s chart analysis). The moving averages continue to be bearish and widen, signalling that the EURGBP could attempt a move lower. Shorting opportunities may exist around the dynamic resistance of the moving averages and if price moves below the previous swing low at 0.8340. The EURGBP may stall or reverse around the previous swing low.
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 British Prime Minister has announced an unexpected general election to be held on 8th June. The purpose of this election is to form a majority government in order to strengthen government unity. 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 are 2 Bank of England Speeches today; 1630 UTC and 1730 UTC.
EURUSD – 1 Hour Chart
As suggested in yesterday’s chart analysis, price found support around the 23.6% Fib level and has since been bullish. The moving averages are bullish and are widening, suggesting that the EURUSD may continue to uptrend. Opportunities to go long could exist around the dynamic support of the moving averages, around any of the key Fib levels and around the previous horizontal support levels at 1.0670 and 1.0680.
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 Manufacturing and Unemployment data will be announced at 1330 UTC. This is followed by a US Treasury Speech at 1815 UTC.
GBPUSD – 1 Hour Chart
The GBPUSD moved below the tight range support area at 1.2815 and then moved lower (as suggested in yesterday’s chart analysis). Price is now bullish and may attempt to swing higher. Long opportunities could exist around the bullish moving averages and around any of the key Fib levels. The moving averages are bullish and are widening, signalling that the GBPUSD may continue to uptrend.
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 British Prime Minister has announced an unexpected general election to be held on 8th June. The purpose of this election is to form a majority government in order to strengthen government unity. 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 Manufacturing and Unemployment data will be announced at 1330 UTC. This is followed by a US Treasury Speech at 1815 UTC. There are 2 Bank of England Speeches today; 1630 UTC and 1730 UTC.
NZDUSD – 1 Hour Chart
As suggested in yesterday’s chart analysis, the bullish channel support area did no hold and the NZDUSD was bearish below the bullish channel. Price has since reversed bullish and is now testing the recent swing high. The NZDUSD has formed a horizontal channel at 0.7000-0.7045. Trading opportunities could exist around the horizontal channel support and resistance areas and if price moves out of the channel (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 Manufacturing and Unemployment data will be announced at 1330 UTC. This is followed by a US Treasury Speech at 1815 UTC.
USDCAD – 1 Hour Chart
Price has continued to rally and move higher (as suggested in yesterday’s chart analysis). The USDCAD is now retracing some of the recent bullish move. Just like many currency pairs, the moving averages are bullish and are widening, signalling that price may attempt another bullish move. Buying opportunities could exist around any of the key Fib levels and around the moving averages.
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. US Manufacturing and Unemployment data will be announced at 1330 UTC. This is followed by a US Treasury Speech at 1815 UTC.
USDCHF – 1 Hour Chart
The USDCHF has reversed the recent bullish retracement is attempting to move lower (as suggested in yesterday’s chart analysis). Price may start ranging between the horizontal levels at 0.9960 and 0.9985. Trading opportunities could exist around the range support and resistance areas and if the USDCHF moves out of the range (break-out trade). The moving averages are bearish and are widening, suggesting that price will move lower. Selling opportunities could exist 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 Manufacturing and Unemployment data will be announced at 1330 UTC. This is followed by a US Treasury Speech at 1815 UTC.
USDJPY – 1 Hour Chart
Price continues to consolidate. The moving averages confirm the market indecision – they are tight and are moving sideways. The USDJPY has formed a horizontal channel at 108.20-109.20. Trading opportunities could exist around the horizontal channel support and resistance areas and if price moves out of the channel (break-out trade). The USDJPY has also formed a diagonal support area. Buying opportunities may exist around this 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 Manufacturing and Unemployment data will be announced at 1330 UTC. This is followed by a US Treasury Speech at 1815 UTC.
XAUUSD – 1 Hour Chart
As suggested in yesterday’s chart analysis, GOLD found support around the bearish channel support area and price has continued to move within the channel. The moving averages have crossed bearish and are steady, signalling that the bearish momentum may continue. Opportunities to go short could exist around the dynamic resistance of the moving averages, around the bearish channel resistance area and if price moves below the bearish channel support area. GOLD may rally if price moves above the bearish channel resistance area.
Hits: 9