Intraday Forex Analysis – 1 Hour Charts – June 19, 2017


 

AUDUSD – 1 Hour Chart

 

AUDUSD - 19.06.2017

As suggested in Friday’s chart analysis, the AUDUSD found support around the trend support area and has since stalled around the most recent swing high. The moving averages are still bullish and are steady, suggesting that price could attempt a move above the horizontal resistance at 0.7625. Long opportunities may exist around the trend support area, around the moving averages and if the AUDUSD moves above the resistance area. If price is bearish, the AUDUSD may stall or reverse around the horizontal support areas at 0.7565 and 0.7520.

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. As expected, the US Federal Reserve rate has increased to 1.25%. Another rate hike is expected by the end of the calendar year. If political uncertainties continue in the US, there could be some weakness in the US Dollar, especially if the uncertainties intensify.

Australian Monetary Policy Minutes will be released at 0130 UTC.

 

EURGBP – 1 Hour Chart

 

EURGBP - 19.06.2017

The EURGBP reversed around the bearish channel support area and has since found resistance around the channel resistance area (as suggested in Friday’s chart analysis). Price is moving within a bearish channel and the moving averages are bearish and are steady, signalling that the EURGBP may attempt a move lower. Shorting opportunities could exist around the dynamic resistance of the moving averages and around the channel resistance area. Price may stall or reverse around the channel support area and around the horizontal support at 0.8725.

Article 50 has been triggered – the UK has started preparing negotiations for leaving the European Union. The British government has lost some parliamentary seats and has had to form a minority government to stay in power.  There is concern that this decision may create more political and economic uncertainty for the UK. Recent economic indicators for the UK are suggesting an unexpected slow-down but the Bank of England have an increased favour for increasing interest rates – creating more optimism and strength for the GBP. 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 news today that will directly impact this pair.

 

EURUSD – 1 Hour Chart

 

EURUSD - 19.06.2017

Price continues to look choppy and be indecisive. The moving averages confirm the market indecision – they have been crossing frequently and are providing no clear direction. Trading opportunities could exist around the identified horizontal levels at 1.1140 and 1.1280. If the EURUSD moves below the horizontal support area, price may attempt a bearish move lower.

As expected, the US Federal Reserve rate has increased to 1.25%. Another rate hike is expected by the end of the calendar year. If political uncertainties continue in the US, there could be some weakness in the US Dollar, especially if the uncertainties 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 news today that will directly impact this pair.

 

GBPUSD – 1 Hour Chart

 

GBPUSD - 19.06.2017

As suggested in Friday’s chart analysis, price has reversed around the range resistance and symmetrical triangle resistance areas. The GBPUSD continues to be indecisive and consolidate within a tightening triangular pattern and also within a horizontal channel at 1.2640-1.2805. Trading opportunities may exist around the consolidation support and resistance areas and if price moves out of either of the consolidation patterns (break-out trades). The moving averages are tight – confirming the current indecision.

Article 50 has been triggered – the UK has started preparing negotiations for leaving the European Union.  The British government has lost some parliamentary seats and has had to form a minority government to stay in power.  There is concern that this decision may create more political and economic uncertainty for the UK. Recent economic indicators for the UK are suggesting an unexpected slow-down but the Bank of England have an increased favour for increasing interest rates – creating more optimism and strength for the GBP. As expected, the US Federal Reserve rate has increased to 1.25%. Another rate hike is expected by the end of the calendar year. If political uncertainties continue in the US, there could be some weakness in the US Dollar, especially if the uncertainties intensify.

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

 

NZDUSD – 1 Hour Chart

 

NZDUSD - 19.06.2017

The NZDUSD continues to be indecisive and is lacking market direction. The moving averages confirm this – they are tight and are moving sideways. Trading opportunities may exist around the identified horizontal levels at 0.7170 and 0.7315, around the moving averages and around the diagonal support 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. As expected, the US Federal Reserve rate has increased to 1.25%. Another rate hike is expected by the end of the calendar year. If political uncertainties continue in the US, there could be some weakness in the US Dollar, especially if the uncertainties intensify.

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

 

USDCAD – 1 Hour Chart

 

USDCAD - 19.06.2017

Price is moving within a horizontal channel at 1.3180-1.3295. The moving averages confirm the market indecision – they are tight and are moving sideways. Trading opportunities could exist around the horizontal channel support and resistance areas and if the USDCAD moves out of the channel (break-out trade). If price breaks to the upside, the USDCAD may stall or reverse around the previous horizontal support at 1.3425/30.

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. As expected, the US Federal Reserve rate has increased to 1.25%. Another rate hike is expected by the end of the calendar year. If political uncertainties continue in the US, there could be some weakness in the US Dollar, especially if the uncertainties intensify.

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

 

USDCHF – 1 Hour Chart

 

USDCHF - 19.06.2017

As suggested in Friday’s chart analysis, the USDCHF has reversed around the bullish channel resistance area and has since been retracing some of the recent bullish swing. The moving averages are bullish and are steady, signalling that price could continue to uptrend within the bullish channel. Buying opportunities may exist around the dynamic support of the moving averages, around the channel support area and around the horizontal support at 0.9660. The USDCHF could stall or reverse around the horizontal resistance and previous swing high at 0.9760 and around the channel resistance area.

As expected, the US Federal Reserve rate has increased to 1.25%. Another rate hike is expected by the end of the calendar year. If political uncertainties continue in the US, there could be some weakness in the US Dollar, especially if the uncertainties 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 news today that will directly impact this pair.

 

USDJPY – 1 Hour Chart

 

USDJPY - 19.06.2017

The USDJPY has found support around the previous horizontal resistance at 110.70 (as suggested in Friday’s chart analysis) and is currently attempting a bullish move. The moving averages are bullish and are widening, signalling that price may continue to move higher. Opportunities to go long could exist around the moving averages and around the previous horizontal resistance levels at 110.70 and 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. As expected, the US Federal Reserve rate has increased to 1.25%. Another rate hike is expected by the end of the calendar year. If political uncertainties continue in the US, there could be some weakness in the US Dollar, especially if the uncertainties intensify.

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

 

XAUUSD – 1 Hour Chart

 

XAUUSD - 19.06.2017

As suggested in Friday’s chart analysis, GOLD bounced off the bearish channel support. Price continues to downtrend within a bearish channel. The moving averages are bearish and are widening, suggesting that the selling momentum could continue. Selling opportunities may exist around the dynamic resistance of the moving averages, around the previous horizontal support at 1260.00 and around the channel resistance area. GOLD could stall or reverse around the channel support area.