Intraday Forex Analysis – 1 Hour Charts – May 26, 2017


 

AUDUSD – 1 Hour Chart

 

AUDUSD - 26.05.2017

As suggested in yesterday’s chart analysis, price reversed bearish around the horizontal resistance at 0.7515. The AUDUSD has moved below the bullish channel support area and below a recent swing low. The moving averages have also crossed bearish and are widening, all suggesting that price may start down-trending. Shorting opportunities could exist around the horizontal levels at 0.7435 and 0.7445, around the previous bullish channel support area (as resistance) and around the bearish moving averages.

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 Core Durable Goods Orders and Preliminary GDP figures are set to be released at 1230 UTC today.

 

EURGBP – 1 Hour Chart

 

EURGBP - 26.05.2017

Price moved above the horizontal channel resistance and has since been trending higher (as suggested in yesterday’s chart analysis). The EURGBP is moving within a bullish channel and the moving averages are bullish and are steady, all signalling that price may continue to uptrend. Long opportunities could exist around the horizontal levels at 0.8665 and 0.8605, around the moving averages and around the bullish channel support area. The EURGBP may stall or reverse around the bullish channel resistance 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 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 currency pair.

 

EURUSD – 1 Hour Chart

 

EURUSD - 26.05.2017

As suggested in yesterday’s chart analysis, the EURUSD reversed around the horizontal resistance at 1.1260 and is ranging between 1.1165-1.1260. Price action has now also formed a symmetrical triangle pattern and the EURUSD is consolidating. The moving averages confirm the current 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 patterns (break-out 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. 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 Core Durable Goods Orders and Preliminary GDP figures are set to be released at 1230 UTC today.

 

GBPUSD – 1 Hour Chart

 

GBPUSD - 26.05.2017

The GBPUSD moved below the range support area and has since been bearish (as suggested in yesterday’s chart analysis). The moving averages are bearish and are steady, suggesting that price could attempt another move lower. Selling opportunities may exist around the previous bearish channel support and resistance areas, around the previous range support at 1.2925 and around the dynamic resistance of the moving averages. Price may stall or reverse around the horizontal levels at 1.2875 and 1.2845.

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.

US Core Durable Goods Orders and Preliminary GDP figures are set to be released at 1230 UTC today.

 

NZDUSD – 1 Hour Chart

 

NZDUSD - 26.05.2017

Price is looking indecisive and is moving between the horizontal levels at 0.6990 and 0.7055. The moving averages are tightening and are moving sideways – confirming the current indecision. Trading opportunities could exist around the horizontal channel support and resistance areas and if the NZDUSD moves out of the channel (break-out trade).

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 Core Durable Goods Orders and Preliminary GDP figures are set to be released at 1230 UTC today.

 

USDCAD – 1 Hour Chart

 

USDCAD - 26.05.2017

The USDCAD rallied off the bearish channel support area (as suggested in yesterday’s chart analysis) but price has since moved out of the channel. The USDCAD is above the moving averages and the channel resistance area, signalling that price could become more bullish. The moving averages are still bearish and steady though, suggesting that the selling momentum continues. Buying opportunities may exist around the previous channel resistance area (as support) and around the moving averages. Price may stall or reverse around the horizontal levels at 1.3385 and 1.3540.

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 Core Durable Goods Orders and Preliminary GDP figures are set to be released at 1230 UTC today.

 

USDCHF – 1 Hour Chart

 

USDCHF - 26.05.2017

Just like many USD pairs, the USDCHF is moving sideways and is indecisive. The moving averages confirm this – they are tight and are crossing frequently. Price is ranging between the horizontal levels at 0.9690 and 0.9770. Trading opportunities could exist around the horizontal channel support and resistance areas and if the USDCHF moves out of the channel (break-out trade). 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 Core Durable Goods Orders and Preliminary GDP figures are set to be released at 1230 UTC today.

 

USDJPY – 1 Hour Chart

 

USDJPY - 26.05.2017

Price action is giving mixed signals. From a technical view, there is no clear directional analysis. Trading opportunities could exist around the identified support and resistance levels. If the USDJPY moves above the swing high at 112.05, price may attempt a bullish move higher. The moving averages are bullish, suggesting that the USDJPY could move higher.

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 Core Durable Goods Orders and Preliminary GDP figures are set to be released at 1230 UTC today.

 

XAUUSD – 1 Hour Chart

 

XAUUSD - 26.05.2017

GOLD continues to consolidate 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 patterns (break-out trades).