Intraday Forex Analysis – 1 Hour Charts – June 05, 2017


 

AUDUSD – 1 Hour Chart

 

AUDUSD - 05.06.2017

The AUDUSD is looking indecisive. The moving averages confirm this – they have been crossing frequently and are providing no clear direction. From a technical view, there are very few areas that could provide trading opportunities. Price may stall or reverse around the identified horizontal levels at 0.7420, 0.7475 and 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 this month (June 2017) though US political uncertainties continue. These events may cause weakness in the US Dollar, especially if they intensify.

A US Non-Manufacturing PMI figure will be released at 1400 UTC today. The Reserve Bank of Australia will announce interest rates at 0430 UTC.

 

EURGBP – 1 Hour Chart

 

EURGBP - 05.06.2017

Price action has formed a bullish channel and price is up-trending within the channel. The moving averages are bullish and are steady, suggesting that the buying momentum may continue. Long opportunities could exist around the previous horizontal resistance at 0.8750, around the dynamic support of the moving averages and around the bullish channel support area. The EURGBP may stall or reverse around the channel resistance area.

Article 50 has been triggered – the UK has started preparing negotiations for leaving the European Union. The British Prime Minister has announced a general election to be held on 8th June (this coming Thursday). 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 Services PMI figure will be announced at 0830 UTC today.

 

EURUSD – 1 Hour Chart

 

EURUSD - 05.06.2017

The EURUSD has been bullish and is up-trending. Price action has formed a bullish channel and the moving averages are bullish and are steady, signalling that price could continue to move higher. Buying opportunities may exist around the horizontal levels at 1.1255, 1.1245 and 1.1205, around the bullish moving averages and around the channel support area. The EURUSD may stall or reverse around the channel resistance area.

The US Federal Reserve have kept rates at 1.00%. The next rate hike is expected this month (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.

A US Non-Manufacturing PMI figure will be released at 1400 UTC today.

 

GBPUSD – 1 Hour Chart

 

GBPUSD - 05.06.2017

Just like many currency pairs, the GBPUSD is indecisive. The moving averages are moving sideways – confirming the market indecision. Price is consolidating within a horizontal channel at 1.2850-1.2890 and also within a symmetrical triangle. Trading opportunities could exist around the consolidation support and resistance areas and if the GBPUSD moves out of either the symmetrical triangle or horizontal channel (break-out trades). If price breaks to the upside, the GBPUSD may stall or reverse around the horizontal levels at 1.2910, 1.2925 and 1.2995.

Article 50 has been triggered – the UK has started preparing negotiations for leaving the European Union. The British Prime Minister has announced a general election to be held on 8th June (this Thursday). 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 this month (June 2017) though US political uncertainties continue. These events may cause weakness in the US Dollar, especially if they intensify.

A UK Services PMI figure will be announced at 0830 UTC today. US Non-Manufacturing PMI data will be released at 1400 UTC.

 

NZDUSD – 1 Hour Chart

 

NZDUSD - 05.06.2017

Price continues to uptrend and has formed a new bullish channel. The moving averages are becoming bullish and are widening, signalling that the NZDUSD may continue to uptrend. Opportunities to go long could exist around the previous swing high at 0.7115, around the dynamic support of the moving averages and around the bullish 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. 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 this month (June 2017) though US political uncertainties continue. These events may cause weakness in the US Dollar, especially if they intensify.

A US Non-Manufacturing PMI figure will be released at 1400 UTC today.

 

USDCAD – 1 Hour Chart

 

USDCAD - 05.06.2017

As suggested in yesterday’s chart analysis, the USDCAD reversed around the horizontal level at 1.3540 and has been bearish. Price is now moving within a horizontal channel at 1.3435-1.3540. Trading opportunities may exist around the horizontal channel support and resistance areas and if the USDCAD moves out of the channel (break-out trade). The moving averages have been crossing frequently and are moving sideways – confirming the current indecision.

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 recent sell-off in the OIL market has caused some Canadian Dollar weakness. The US Federal Reserve have kept rates at 1.00%. The next rate hike is expected this month (June 2017) though US political uncertainties continue. These events may cause weakness in the US Dollar, especially if they intensify.

A US Non-Manufacturing PMI figure will be released at 1400 UTC today.

 

USDCHF – 1 Hour Chart

 

USDCHF - 05.06.2017

The USDCHF has reversed around the 38.2% Fib level (as suggested in yesterday’s chart analysis) and has formed a swing lower. Price is down-trending. The USDCHF has formed a bearish channel and the moving averages are bearish and are steady, suggesting that price may continue to be bearish. Selling opportunities could exist around the dynamic resistance of the moving averages, around the previous swing low at 0.9670 and around the channel resistance area. The USDCHF may stall or reverse around the channel support area.

The US Federal Reserve have kept rates at 1.00%. The next rate hike is expected this month (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 Non-Manufacturing PMI figure will be released at 1400 UTC today.

 

USDJPY – 1 Hour Chart

 

USDJPY - 05.06.2017

Price is ranging between the horizontal levels at 110.30 and 112.05. The moving averages confirm the market indecision – they have been crossing frequently and are moving sideways. Trading opportunities could exist around the range support and resistance areas and if the USDJPY moves out of the range (break-out trade).

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 this month (June 2017) though US political uncertainties continue. These events may cause weakness in the US Dollar, especially if they intensify.

A US Non-Manufacturing PMI figure will be released at 1400 UTC today.

 

XAUUSD – 1 Hour Chart

 

XAUUSD - 05.06.2017

GOLD has moved higher and continues to be bullish and uptrend. The moving averages have crossed bullish and are widening, suggesting that the uptrend could continue. If price starts retracing, buying opportunities may exist around the previous horizontal channel resistance at 1271.90 and around the dynamic support of the moving averages.