Inter-day Forex Analysis – Daily Charts – June 23, 2017


 

EURGBP – Daily Chart

 

EURGBP - 23.06.2017 - Daily

As suggested in our last inter-day chart analysis, price has been moving off the horizontal channel support and resistance areas and continues to move within the horizontal channel at 0.8335-0.8840. The moving averages confirm the market indecision – they have been crossing frequently and are moving sideways. Trading opportunities could exist around the horizontal channel support and resistance areas and if the EURGBP moves out of the channel (break-out trade). If price breaks to the downside, the EURGBP may stall or reverse around the horizontal resistance at 0.9040.

Article 50 has been triggered – the UK has started preparing negotiations for leaving the European Union. The Conservative 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.

 

EURUSD – Daily Chart

 

EURUSD - 23.06.2017 - Daily

The EURUSD reversed around the previous horizontal resistance at 1.0860 and has since been very bullish (as suggested in our last inter-day chart analysis). Price action has formed a horizontal channel at 1.1125-1.1280 and the EURUSD is ranging within the channel. 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 are bullish and are widening, signalling that the EURUSD could move higher. If price breaks to the upside, the EURUSD may stall or reverse around the horizontal resistance at 1.1345. If price breaks to the downside, the EURUSD could stall or reverse around the horizontal level at 1.0860.

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.

 

GBPUSD – Daily Chart

 

GBPUSD - 23.06.2017 - Daily

Price is up-trending within a bullish channel and is currently retracing some of the recent bullish swing. The moving averages are bullish but are beginning to move sideways, signalling market indecision. Buying opportunities may exist around the bullish channel support area. The GBPUSD could stall or reverse around the bullish channel resistance area and around the horizontal resistance at 1.3450.

Article 50 has been triggered – the UK has started preparing negotiations for leaving the European Union.  The Conservative 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.

 

USDCHF – Daily Chart

 

USDCHF - 23.06.2017 - Daily

The USDCHF is down-trending within a bearish channel. The moving averages are bearish and are widening, suggesting that the selling momentum may continue. Shorting opportunities could exist around the dynamic resistance of the moving averages, around the previous horizontal support at 0.9855 and around the bearish channel resistance area. Price may stall or reverse around the channel support area and around the horizontal support levels at 0.9620 and 0.9545.

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.

 

USDJPY – Daily Chart

 

USDJPY - 23.06.2017 - Daily

Price action has formed a symmetrical triangle consolidation pattern. The moving averages are tight and are moving sideways – confirming the current indecision. Trading opportunities may exist around the consolidation support and resistance areas and if the USDJPY moves out of the consolidation area (break-out trade). If price breaks above the symmetrical triangle resistance area, the USDJPY may stall or reverse around the horizontal resistance at 115.15. If price breaks below the symmetrical triangle support area, the USDJPY may stall or reverse around the horizontal level at 107.50.

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.