Intraday Forex Analysis – 1 Hour Charts – June 02, 2017


 

AUDUSD – 1 Hour Chart

 

AUDUSD - 02.06.2017

As suggested in yesterday’s chart analysis, price has reversed around the bearish channel support area. The AUDUSD is down-trending within a bearish channel. The moving averages are bearish and are widening, signalling that price may continue to be bearish. Selling opportunities could exist around any of the key Fib levels, around the moving averages, around the previous horizontal support at 0.7420 and around the bearish channel resistance area. Price may stall or reverse around the channel support area.

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 Non-Farm Employment Change, Unemployment and Average Hourly Earnings figures will be released at 1230 UTC today. These events are likely to cause volatility across all currency pairs.

 

EURGBP – 1 Hour Chart

 

EURGBP - 02.06.2017

Price has reversed around the previous swing high and is now ranging between the horizontal levels at 0.8660 and 0.8750 (as suggested in yesterday’s chart analysis). The moving averages confirm the market indecision – they are moving sideways. Trading opportunities could exist around the range support and resistance areas and if the EURGBP moves out of the range (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 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 Construction PMI figure will be announced at 0830 UTC today. US Non-Farm Employment Change, Unemployment and Average Hourly Earnings figures will be released at 1230 UTC. These events are likely to cause volatility across all currency pairs.

 

EURUSD – 1 Hour Chart

 

EURUSD - 02.06.2017

The EURUSD is looking indecisive. The moving averages have been crossing frequently – confirming the market indecision. Trading opportunities may exist around the horizontal levels at 1.1190 and 1.1260 and around the previous bearish channel support and resistance areas.

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 Non-Farm Employment Change, Unemployment and Average Hourly Earnings figures will be released at 1230 UTC today. These events are likely to cause volatility across all currency pairs.

 

GBPUSD – 1 Hour Chart

 

GBPUSD - 02.06.2017

Just like many currency pairs, the GBPUSD is choppy and indecisive. Price action has formed a horizontal channel at 1.2780-1.2910 and price is moving within the channel. Trading opportunities could exist around the horizontal channel support and resistance areas and if the GBPUSD moves out of the channel (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 UK Construction PMI figure will be announced at 0830 UTC today. US Non-Farm Employment Change, Unemployment and Average Hourly Earnings figures will be released at 1230 UTC. These events are likely to cause volatility across all currency pairs.

 

NZDUSD – 1 Hour Chart

 

NZDUSD - 02.06.2017

Price has moved below the bearish channel support area and the moving averages, suggesting that buying momentum is weak. The moving averages are also moving sideways, signalling market indecision. Shorting opportunities may exist around the previous bullish channel support area. The NZDUSD has formed a horizontal channel at 0.7055-0.7115. Trading opportunities could exist around the horizontal channel support and resistance areas and if price 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 Non-Farm Employment Change, Unemployment and Average Hourly Earnings figures will be released at 1230 UTC today. These events are likely to cause volatility across all currency pairs.

 

USDCAD – 1 Hour Chart

 

USDCAD - 02.06.2017

As suggested in yesterday’s chart analysis, price found support around the moving averages and continues to be bullish. The moving averages are bullish and are widening, signalling that the USDCAD could continue to uptrend and move higher. Price action has formed a number of clear horizontal levels and also a bullish channel. Buying opportunities may exist around the dynamic support of the moving averages, around the bullish channel support area and as price moves above the identified horizontal resistance levels. The USDCAD may stall or reverse around the channel resistance area and around the horizontal levels at 1.3525 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 Non-Farm Employment Change, Unemployment and Average Hourly Earnings figures will be released at 1230 UTC today. These events are likely to cause volatility across all currency pairs. A Canadian Trade Balance figure will be announced at the same time.

 

USDCHF – 1 Hour Chart

 

USDCHF - 02.06.2017

The USDCHF has been finding resistance around the 38.2% Fib level (as suggested in yesterday’s analysis). Price has been down-trending and is currently forming a potential lower swing high. The moving averages are bearish and are widening, suggesting that the USDCHF may attempt a bearish move lower. Selling opportunities could exist around the moving averages and around any of the key Fib levels. Price may stall or reverse around the previous swing low at 0.9670.

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 Non-Farm Employment Change, Unemployment and Average Hourly Earnings figures will be released at 1230 UTC today. These events are likely to cause volatility across all currency pairs.

 

USDJPY – 1 Hour Chart

 

USDJPY - 02.06.2017

Price is indecisive. The moving averages confirm this – they have been crossing frequently and have been providing no clear market direction. Trading opportunities may exist around the identified horizontal levels and around the moving averages. If the USDJPY moves above the resistance at 112.05, price may attempt a bullish 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 Non-Farm Employment Change, Unemployment and Average Hourly Earnings figures will be released at 1230 UTC today. These events are likely to cause volatility across all currency pairs.

 

XAUUSD – 1 Hour Chart

 

XAUUSD - 02.06.2017

GOLD continues to uptrend within a bullish channel. Price is currently retracing and moving towards the channel support area. The moving averages have been crossing frequently and are tight, signalling market indecision. Long opportunities could exist around the bullish channel support area. If GOLD moves below the support area, price could attempt a bearish move lower. GOLD may stall or reverse around the channel resistance area.