Intraday Forex Analysis – 1 Hour Charts – May 24, 2017


 

AUDUSD – 1 Hour Chart

 

AUDUSD - 24.05.2017

Price has moved below the recent bullish channel support area and the moving averages, suggesting that buying momentum is weakening and that the AUDUSD may become bearish. Opportunities to go short could exist around the previous channel support area, around the moving averages and around the horizontal level at 0.7465. If price is bearish, the AUDUSD may stall or reverse around the horizontal support at 0.7390.

The Reserve Bank of Australia (RBA) 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 but there is no major economic indicator that suggests that the RBA will raise rates any time soon. The US Federal Reserve have kept rates at 1.00%. The next rate hike is expected in June 2017 though US political uncertainties continue. These events may cause weakness in the US Dollar, especially if they intensify.

A US Crude Oil Inventories figure will be released at 1430 UTC today. This is followed by FOMC Meeting Minutes at 1800 UTC.

 

EURGBP – 1 Hour Chart

 

EURGBP - 24.05.2017

As suggested in yesterday’s chart analysis, the EURGBP has been finding support around the 38.2% Fib level, the previous horizontal resistance and the longer-term moving average. Price has been clearly up-trending and is currently in a retracement phase. The moving averages are bullish and steady, signalling that the EURGBP may attempt a bullish move. Buying opportunities could exist around the key Fib levels, around the longer-term moving average and around the horizontal levels at 0.8605 and 0.8530.

Article 50 has been triggered – the UK has started negotiations on leaving the European Union. The British Prime Minister has announced a 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. Recent economic indicators for the UK are suggesting an unexpected slow-down. The Bank of England recently kept rates at 0.25% and announced that wage growth is stagnant while inflation is increasing, causing some concerns for the UK economy. 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 will be a European Central Bank Speech at 1245 UTC today.

 

EURUSD – 1 Hour Chart

 

EURUSD - 24.05.2017

The EURUSD has moved below the trend support area and has since been bearish (as suggested in yesterday’s chart analysis). The moving averages are moving sideways, suggesting that price could start ranging between the horizontal levels at 1.1160 and 1.1260. Trading opportunities may exist around the range support and resistance areas and if the EURUSD moves out of the range (break-out trade). Shorting opportunities may exist around the previous trend support area (as resistance).

The US Federal Reserve have kept rates at 1.00%. The next rate hike is expected in June 2017 though US political uncertainties continue. These events may cause weakness in the US Dollar, especially if they intensify. 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 will be a European Central Bank Speech at 1245 UTC today. A US Crude Oil Inventories figure will be released at 1430 UTC. This is followed by FOMC Meeting Minutes at 1800 UTC.

 

GBPUSD – 1 Hour Chart

 

GBPUSD - 24.05.2017

As suggested in yesterday’s chart analysis, price has been reversing around the consolidation support and resistance areas and continues to move within the consolidation. The moving averages confirm the current market indecision – they have been crossing frequently and are now moving sideways. Trading opportunities could exist around the consolidation support and resistance areas and if the GBPUSD moves out of the consolidation (break-out trade).

Article 50 has been triggered – the UK has started negotiations on leaving the European Union. The British Prime Minister has announced a 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. Recent economic indicators for the UK are suggesting an unexpected slow-down. The Bank of England recently kept rates at 0.25% and announced that wage growth is stagnant while inflation is increasing, causing some concerns for the UK economy. The US Federal Reserve have kept rates at 1.00%. The next rate hike is expected in June 2017 though US political uncertainties continue. These events may cause weakness in the US Dollar, especially if they intensify.

A US Crude Oil Inventories figure will be released at 1430 UTC today. This is followed by FOMC Meeting Minutes at 1800 UTC.

 

NZDUSD – 1 Hour Chart

 

NZDUSD - 24.05.2017

Price continued to be bullish during yesterday’s trading sessions but is now retracing. The moving averages are bullish and are widening, suggesting that the NZDUSD may attempt a swing higher. Long opportunities could exist around the dynamic support of the moving averages, around any of the key Fib levels, around the previous horizontal channel resistance at 0.6950 and around the trend support area.

The Reserve Bank of New Zealand recently kept rates at 1.75% and announced that there will not be a rate hike in the foreseeable future. This has caused some weakness. The New Zealand Dollar continues to be attractive to currency investors due to the yield on carry trades. The US Federal Reserve have kept rates at 1.00%. The next rate hike is expected in June 2017 though US political uncertainties continue. These events may cause weakness in the US Dollar, especially if they intensify.

A US Crude Oil Inventories figure will be released at 1430 UTC today. This is followed by FOMC Meeting Minutes at 1800 UTC.  The New Zealand Annual Budget Release will be at 0200 UTC.

 

USDCAD – 1 Hour Chart

 

USDCAD - 24.05.2017

As suggested in yesterday’s chart analysis, the USDCAD reversed around the channel support area and price is now retracing. The USDCAD has been down-trending within a bearish channel. The moving averages are bearish but are starting to move sideways, signalling that selling momentum could be weakening and that price may continue to retrace. Selling opportunities may exist around the longer-term moving average, around the bearish channel resistance area and around the previous horizontal support at 1.3575. The USDCAD may stall or reverse around the channel support area.

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 have kept rates at 1.00%. The next rate hike is expected in June 2017 though US political uncertainties continue. These events may cause weakness in the US Dollar, especially if they intensify.

The Bank of Canada will announce Rates at 1400 UTC today. A US Crude Oil Inventories figure will be released at 1430 UTC. This is followed by FOMC Meeting Minutes at 1800 UTC.

 

USDCHF – 1 Hour Chart

 

USDCHF - 24.05.2017

The USDCHF continues to look a little choppy. Price is moving within a horizontal channel at 0.9690-0.9770 and also a bullish channel. The moving averages are tightening and moving sideways, signalling market indecision. Trading opportunities could exist around the horizontal channel support and resistance areas and if the USDCHF moves out of the channel  (break-out trade). Price may stall or reverse around the bullish channel, around the moving averages and around the horizontal resistance at 0.9810

The US Federal Reserve have kept rates at 1.00%. The next rate hike is expected in June 2017 though US political uncertainties continue. These events may cause weakness in the US Dollar, especially if they intensify. The Swiss National Bank recently decided to keep rates at -0.75%. The CHF could strengthen if political uncertainty in the US or Europe intensifies.

A US Crude Oil Inventories figure will be released at 1430 UTC today. This is followed by FOMC Meeting Minutes at 1800 UTC.

 

USDJPY – 1 Hour Chart

 

USDJPY - 24.05.2017

Price has been bullish and price action has formed a short series of higher swing highs and higher swing lows. The moving averages are bullish and are steady, signalling that the USDJPY may continue to uptrend. Buying opportunities could exist around any of the identified horizontal levels at 111.55, 110.90 and 110.30, around the dynamic support of the moving averages and around the trend 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 or Europe intensifies. The US Federal Reserve have kept rates at 1.00%. The next rate hike is expected in June 2017 though US political uncertainties continue. These events may cause weakness in the US Dollar, especially if they intensify.

A US Crude Oil Inventories figure will be released at 1430 UTC today. This is followed by FOMC Meeting Minutes at 1800 UTC.

 

XAUUSD – 1 Hour Chart

 

XAUUSD - 24.05.2017

As suggested in yesterday’s chart analysis, buying momentum has weakening and price has moved below the consolidation support area. The moving averages are becoming more bearish and could cross bearish, suggesting that GOLD may attempt a move lower. Opportunities to go short may exist around the moving averages and around the previous trend support area. Price may stall or reverse around the horizontal levels at 1236.30 and 1263.90.