Intraday Forex Analysis – 1 Hour Charts – May 25, 2017


 

AUDUSD – 1 Hour Chart

 

AUDUSD - 25.05.2017

The AUDUSD continues to uptrend within a bullish channel. The moving averages are bullish and steady, suggesting that the buying momentum may continue. Long opportunities could exist around the dynamic support of the moving averages, around the previous horizontal resistance at 0.7465 and around the channel support area. Price may stall or reverse around the bullish channel resistance area and around the horizontal resistance at 0.7510.

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.

US Unemployment Claims data is set to be released at 1230 UTC today.

 

EURGBP – 1 Hour Chart

 

EURGBP - 25.05.2017

As suggested in yesterday’s chart analysis, price continued to find support around the longer-term moving average and previous swing high and is currently attempting a swing higher. The EURGBP may now start consolidating within the identified symmetrical triangle and horizontal channel at 0.8605-0.8670. Trading opportunities could exist around the consolidation support and resistance areas and if price moves out of the consolidation. If the EURGBP breaks to the downside, price may stall or reverse around the horizontal level at 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.

A UK GDP Second Estimate figure will be announced at 0830 UTC today.

 

EURUSD – 1 Hour Chart

 

EURUSD - 25.05.2017

Price is ranging between the horizontal levels at 1.1165 and 1.1255 (as suggested in yesterday’s chart analysis). The moving averages confirm the current market indecision – they are tight and are moving sideways. Trading opportunities may exist around the range support and resistance areas and if the EURUSD moves out of the range (break-out trade). If price breaks to the downside, the EURUSD may stall or reverse around the horizontal support at 1.1080.

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.

US Unemployment Claims data is set to be released at 1230 UTC today.

 

GBPUSD – 1 Hour Chart

 

GBPUSD - 25.05.2017

The GBPUSD continues to be choppy and indecisive. The moving averages are moving sideways and have been crossing frequently – confirming the lack of trend momentum. Price action has formed a horizontal channel at 1.2925-1.3040. Trading opportunities could exist around the channel support and resistance areas and if the GBPUSD moves out of the channel (break-out trade). Price action has also formed a bearish channel. Selling opportunities could exist around the bearish channel resistance area. Price may stall or reverse around the bearish channel support area.

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 UK GDP Second Estimate figure will be announced at 0830 UTC today. This is followed by US Unemployment Claims data at 1230 UTC.

 

NZDUSD – 1 Hour Chart

 

NZDUSD - 25.05.2017

As suggested in yesterday’s chart analysis, the NZDUSD found support around the shorter-term moving average and is attempting to form a swing higher. Price has been up-trending but is struggling to move above the horizontal resistance at 0.7045. The moving averages are bullish and are steady, signalling that the NZDUSD may move higher. Buying opportunities could exist around the bullish moving averages, around the horizontal support at 0.6990 and if price moves above the horizontal resistance at 0.7045.

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.

US Unemployment Claims data is set to be released at 1230 UTC today.

 

USDCAD – 1 Hour Chart

 

USDCAD - 25.05.2017

Price reversed around the longer-term moving average (as suggested in yesterday’s chart analysis) and has since moved below the bearish channel support area. The USDCAD has now formed another bearish channel and price continues to downtrend. The moving averages confirm this – they are bearish and are steady. Shorting opportunities may exist around the previous channel support area (as resistance), around the dynamic resistance of the moving averages and around the newly formed bearish channel resistance area. 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.

US Unemployment Claims data is set to be released at 1230 UTC today.

 

USDCHF – 1 Hour Chart

 

USDCHF - 25.05.2017

As suggested in yesterday’s chart analysis, price has reversed around the horizontal channel resistance and continues to range between 0.9690 and 0.9770. The moving averages are tight and are moving sideways – confirming the market indecision. Trading opportunities could exist around the range support and resistance areas and if the USDCHF moves out of the range (break-out trade). Price action has also formed a bullish channel. If price breaks to the upside, the USDCHF may stall or reverse 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.

US Unemployment Claims data is set to be released at 1230 UTC today.

 

USDJPY – 1 Hour Chart

 

USDJPY - 25.05.2017

The USDJPY is up-trending. Price retraced some of the recent bullish swing but has found support around the dynamic support of the moving averages and the previous swing high at 111.55 (as suggested in yesterday’s chart analysis). The moving averages are bullish and are widening, signalling that the USDJPY may attempt to move higher. Buying opportunities could exist around the dynamic support of the moving averages, around the trend support area and around the identified horizontal levels at 111.55, 110.90 and 110.30. Price may stall or reverse around the previous swing high at 112.05.

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.

US Unemployment Claims data is set to be released at 1230 UTC today.

 

XAUUSD – 1 Hour Chart

 

XAUUSD - 25.05.2017

GOLD has become indecisive and is consolidating within a symmetrical triangle and a horizontal channel at 1246.50-1263.90. The moving averages confirm the market indecision – they are tight and are moving sideways. Trading opportunities could exist around the consolidation support and resistance areas and if price moves out of the consolidation (break-out trade).