Intraday Forex Analysis – 1 Hour Charts – May 31, 2017


 

AUDUSD – 1 Hour Chart

 

AUDUSD - 31.05.2017

Price is looking indecisive. The moving averages confirm this – they are tight and are moving sideways. From a technical view, there are very few areas that may provide trading opportunities. Trading opportunities could exist around the horizontal levels at 0.7420 and 0.7515 and around the 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.

Australian Retail Sales and Private Capital Expenditure data will be released at 0130 UTC.

 

EURGBP – 1 Hour Chart

 

EURGBP - 31.05.2017

As suggested in yesterday’s chart analysis, price found support around the previous horizontal resistance at 0.8665 and around the channel support area and has since been bullish. The EURGBP continues to uptrend within a bullish channel. The moving averages are bullish but are tight, signalling that price could struggle to reach the channel resistance area. Buying opportunities may exist around the moving averages, around the channel support area and around the horizontal level at 0.8665. Price may stall or reverse around the previous swing high at 0.8745.

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 pair.

 

EURUSD – 1 Hour Chart

 

EURUSD - 31.05.2017

The EURUSD has been finding resistance around the trend resistance area and around the longer-term moving average (as suggested in yesterday’s chart analysis). Price action has formed a bearish channel and the EURUSD is down-trending within the channel. The moving averages are bearish but are beginning to move sideways, suggesting that selling momentum is weakening. If the EURUSD moves above the channel resistance area, price may attempt a bullish move. Selling opportunities could exist around the channel resistance area and around the moving averages.

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

 

GBPUSD – 1 Hour Chart

 

GBPUSD - 31.05.2017

As suggested in yesterday’s chart analysis, the GBPUSD reversed bearish around the longer-term moving average and around the previous channel support area. Price has since been finding support around 1.2790. The GBPUSD is consolidating between diagonal resistance areas and the horizontal support at 1.2790. Trading opportunities may exist around the consolidation support and resistance areas and if price moves out of the consolidation (break-out trade). The moving averages are bearish, suggesting that the GBPUSD may break to the downside.

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.

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

 

NZDUSD – 1 Hour Chart

 

NZDUSD - 31.05.2017

Price continues to uptrend within a bullish channel and has been finding resistance around the channel resistance area (as suggested in yesterday’s chart analysis). The moving averages are bullish and are steady, signalling that the NZDUSD may continue to be bullish. Opportunities to go long could exist around the dynamic support of the moving averages and around the channel support area. Price may stall or reverse around the channel resistance 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.

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

 

USDCAD – 1 Hour Chart

 

USDCAD - 31.05.2017

As suggested in yesterday’s chart analysis, price has been moving off the range support and resistance areas and continues to range between the horizontal levels at 1.3435 and 1.3490. The moving averages are moving sideways and have been crossing frequently – confirming the current market indecision. Trading opportunities may exist around the range support and resistance areas and if the USDCAD moves out of the range (break-out trade). When price breaks-out of the range, the USDCAD 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.

A Canadian GDP figure will be released at 1230 UTC today.

 

USDCHF – 1 Hour Chart

 

USDCHF - 31.05.2017

The USDCHF has reversed around the horizontal channel resistance area and continues to move within the horizontal channel at 0.9690-0.9810 (as suggested in yesterday’s chart analysis). The moving averages confirm the market indecision – they have been crossing frequently and are moving sideways. Trading opportunities could exist around the horizontal channel support and resistance areas and if price moves out of the channel (break-out trade).

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.

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

 

USDJPY – 1 Hour Chart

 

USDJPY - 31.05.2017

As suggested in yesterday’s chart analysis, the USDJPY has been rejected around the shorter-term moving average and around the diagonal resistance area. Price action has formed a symmetrical triangle pattern and the USDJPY is consolidating within the pattern. Trading opportunities may exist around the consolidation support and resistance areas and if the USDJPY moves out of the consolidation (break-out trade). The moving averages are bearish and are steady, signalling that price may move lower. If the USDJPY breaks to the downside, price may stall or reverse around the swing low at 110.30.

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 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.

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

 

XAUUSD – 1 Hour Chart

 

XAUUSD - 31.05.2017

GOLD has moved off the bullish channel resistance area (as suggested in yesterday’s chart analysis). Price continues to uptrend within the channel and GOLD is currently retracing towards the channel support area. The moving averages are tightening and moving sideways, suggesting that the retracement may continue. Buying opportunities could exist around the channel support area. Price may stall or reverse around the channel resistance area.