Intraday Forex Analysis – 1 Hour Charts – June 20, 2017


 

AUDUSD – 1 Hour Chart

 

AUDUSD - 20.06.2017

Price is ranging between the horizontal levels at 0.7575 and 0.7625. The moving averages confirm the current indecision – they are tightening and starting to move sideways. Trading opportunities may exist around the range support and resistance areas and if the AUDUSD moves out of the range (break-out trade). If price breaks to the downside, the AUDUSD could stall or reverse around the horizontal support at 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.

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

 

EURGBP – 1 Hour Chart

 

EURGBP - 20.06.2017

The EURGBP has moved out of the recent bearish channel and continues to be indecisive. The moving averages are now moving sideways and are tightening – confirming the lack of trend momentum. Trading opportunities could exist around any of the identified horizontal levels at 0.8655, 0.8725, 0.8780 and 0.8865. Buying opportunities may exist around the previous channel resistance area (as support). Price could start ranging between 0.8725 and 0.8780.

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.

The Governor of the Bank of England will speak at 0730 UTC today.

 

EURUSD – 1 Hour Chart

 

EURUSD - 20.06.2017

As suggested in yesterday’s chart analysis, price has found support around the identified horizontal level at 1.1140. The EURUSD continues to look choppy and be indecisive. The moving averages confirm this – they have been crossing frequently and providing no clear market direction. Trading opportunities could exist around any of the identified horizontal levels. If price moves below the horizontal support at 1.1140, the EURUSD 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 scheduled news today that will directly impact this currency pair.

 

GBPUSD – 1 Hour Chart

 

GBPUSD - 20.06.2017

Price has reversed bearish around the horizontal channel resistance and symmetrical triangle resistance areas (as suggested in yesterday’s chart analysis). The GBPUSD continues to consolidate within the horizontal channel at 1.2640-1.2805 and within the symmetrical triangle. The moving averages confirm the current indecision – they are tight and are moving sideways. Trading opportunities could exist around either consolidation pattern support and resistance areas and if price moves out of either consolidation (break-out trades). If the GBPUSD breaks to the downside of the symmetrical triangle, price may stall or reverse around the horizontal channel support area.

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.

The Governor of the Bank of England will speak at 0730 UTC today.

 

NZDUSD – 1 Hour Chart

 

NZDUSD - 20.06.2017

The NZDUSD continues to be indecisive and is lacking market direction. The moving averages confirm this – they are tight and have been crossing frequently. Price action has formed a horizontal channel at 0.7185-0.7315 and also a symmetrical triangle pattern. Trading opportunities may exist around the support and resistance areas of either patterns and if the NZDUSD moves out of either pattern (break-out trades).

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 scheduled news today that will directly impact this currency pair.

 

USDCAD – 1 Hour Chart

 

USDCAD - 20.06.2017

Just like many currency pairs, the USDCAD is ranging within a horizontal channel. The moving averages have been crossing frequently and are very tight – confirming the market indecision. Trading opportunities could exist around the horizontal channel support and resistance areas at 1.3175 and 1.3295 and if price moves out of the channel (break-out trade). If the USDCAD breaks to the upside, price may stall or reverse around the horizontal levels at 1.3425 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 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 scheduled news today that will directly impact this currency pair.

 

USDCHF – 1 Hour Chart

 

USDCHF - 20.06.2017

As suggested in yesterday’s chart analysis, price has reversed around the previous swing high at 0.9760. The USDCHF continues to uptrend within a bullish channel and the moving averages are bullish, signalling that the buying momentum may continue. Long opportunities could exist around the dynamic support of the moving averages, around the bullish channel support area and around the horizontal support at 0.9660. Price may stall or reverse around the horizontal resistance 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 a Swiss National Bank Speech at 0845 UTC today.

 

USDJPY – 1 Hour Chart

 

USDJPY - 20.06.2017

Price has continued to be bullish and has moved higher (as suggested in yesterday’s chart analysis). The moving averages are bullish and are steady, suggesting that the USDJPY could continue to uptrend. Buying opportunities may exist around the bullish moving averages and around the horizontal levels at 110.70 and 110.30. Price may stall or reverse around the horizontal resistance at 111.75.

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 scheduled news today that will directly impact this currency pair.

 

XAUUSD – 1 Hour Chart

 

XAUUSD - 20.06.2017

As suggested in yesterday’s chart analysis, price has continued to be bearish and continues to find support around the bearish channel support area. GOLD is down-trending within a bearish channel and the moving averages are bearish and are steady, all signalling that the selling momentum could continue. Shorting 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. Price may stall or reverse around the channel support area.