Intraday Forex Analysis – 1 Hour Charts – June 07, 2017


 

AUDUSD – 1 Hour Chart

 

AUDUSD - 07.06.2017

The AUDUSD has been very bullish and has moved above the recent consolidation area. The moving averages are bullish and are widening, suggesting that price may start up-trending. If the AUDUSD starts retracing, buying opportunities could exist around the previous horizontal resistance at 0.7515 and around the dynamic support of 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 this month (June 2017) though US political uncertainties continue. These events may cause weakness in the US Dollar, especially if they intensify.

US Crude Oil Inventories is scheduled for 1430 UTC today. An Australian Trade Balance figure will be released at 0130 UTC.

 

EURGBP – 1 Hour Chart

 

EURGBP - 07.06.2017

As suggested in yesterday’s chart analysis, the EURGBP has moved off the range support area and continues to range between the horizontal levels at 0.8695 and 0.8765. The moving averages are moving sideways and are tight – confirming the current market indecision. Trading opportunities could exist around the range support and resistance areas and if price moves out of the range (break-out trade).

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.

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

UK General Election:

Voting will take place from 0600 UTC-2100 UTC on 08/06/2017. Results should start being announced from 0000 UTC on 09/06/2016 with a final result by 0400-0600 UTC.

The market has priced in a majority win by the Conservative party. If there is a hung parliament (no major party win, usually leads to a coalition) then the GBP could move much lower – some analysts are expecting Sterling to drop to around 1.2000 against the US Dollar.

GBP pairs are likely to be volatile.

 

EURUSD – 1 Hour Chart

 

EURUSD - 07.06.2017

Price has found support around the shorter-term moving average and the bullish channel support area (as suggested in yesterday’s chart analysis). The EURUSD is moving within a horizontal channel at 1.1240-1.1280 and also within a bullish channel. The moving averages are moving sideways, suggesting that that price may continue to range. Trading opportunities may exist around the horizontal channel support and resistance areas and if the EURUSD moves out of the horizontal channel (break-out trade). Long opportunities could exist around the bullish channel support area. If price is bullish, the EURUSD may stall or reverse around the bullish 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.

US Crude Oil Inventories is scheduled for 1430 UTC today.

 

GBPUSD – 1 Hour Chart

 

GBPUSD - 07.06.2017

As suggested in yesterday’s chart analysis, price has found support around the longer-term moving average and the bullish channel support area. The moving averages are bullish and are widening and price action has formed a bullish channel, all signalling that the GBPUSD could attempt a move higher. Buying opportunities may exist around the dynamic support of the moving averages and around the bullish channel support area. Price may stall or reverse around the horizontal resistance at 1.2935 and around the channel resistance area. If the GBPUSD moves below the channel support, price may attempt a bearish move lower.

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.

US Crude Oil Inventories is scheduled for 1430 UTC today.

UK General Election:

Voting will take place from 0600 UTC-2100 UTC on 08/06/2017. Results should start being announced from 0000 UTC on 09/06/2016 with a final result by 0400-0600 UTC.

The market has priced in a majority win by the Conservative party. If there is a hung parliament (no major party win, usually leads to a coalition) then the GBP could move much lower – some analysts are expecting Sterling to drop to around 1.2000 against the US Dollar.

GBP pairs are likely to be volatile.

 

NZDUSD – 1 Hour Chart

 

NZDUSD - 07.06.2017

The NZDUSD has found support around the bullish channel support area and continues to uptrend (as suggested in yesterday’s chart analysis). The moving averages are bullish and are steady, signalling that price may continue to be bullish. Long opportunities could exist around the channel support area, around the moving averages and around the horizontal levels at 0.7115 and 0.7145.

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.

US Crude Oil Inventories is scheduled for 1430 UTC today.

 

USDCAD – 1 Hour Chart

 

USDCAD - 07.06.2017

As suggested in yesterday’s chart analysis, the USDCAD has been finding support around the horizontal channel support area and continues to move within the large horizontal channel at 1.3435-1.3540. Trading opportunities could exist around the horizontal channel support and resistance areas and if price moves out of the channel (break-out trade). The moving averages have crossed bearish and are widening, suggesting that price may attempt a move lower. Shorting opportunities could exist around the moving averages.

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.

US Crude Oil Inventories is scheduled for 1430 UTC today.

 

USDCHF – 1 Hour Chart

 

USDCHF - 07.06.2017

Price continues to downtrend within a bearish channel. The moving averages are bearish, suggesting that the channel resistance may hold and that the USDCHF could attempt a swing lower. The moving averages are also beginning to move sideways though, signalling market indecision. Selling opportunities may exist around the dynamic resistance of the moving averages, around the channel resistance area and around the horizontal levels at 0.9660 and 0.9675.

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.

US Crude Oil Inventories is scheduled for 1430 UTC today.

 

USDJPY – 1 Hour Chart

 

USDJPY - 07.06.2017

As suggested in yesterday’s chart analysis, price has reversed around the trend resistance area and continues to downtrend. The moving averages are bearish and are widening, suggesting that the USDJPY may continue to be bearish. Selling opportunities could exist around the trend resistance area and around the dynamic resistance of the moving averages.

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.

US Crude Oil Inventories is scheduled for 1430 UTC today.

 

XAUUSD – 1 Hour Chart

 

XAUUSD - 07.06.2017

GOLD has continued to be bullish (as suggested in yesterday’s chart analysis). Price action has formed a tight horizontal channel at 1290.95-1294.25 and GOLD is ranging within the channel. Trading opportunities may exist around the range support and resistance areas and if price moves out of the range (break-out trade). If GOLD breaks to the downside and starts retracing some of the recent bullish swing, buying opportunities could exist around the moving averages and around the identified horizontal levels at 1281.35 and 1271.90.