Intraday Forex Analysis – 1 Hour Charts – August 10, 2016

AUDUSD – 1 Hour Chart

As identified in yesterday’s chart analysis, the AUDUSD found support at the consolidation support area and has moved much higher. Price is now nearing the upwards channel resistance area and there is evidence of greater selling momentum entering the market. The moving averages are bearish and continue to widen though, suggesting that the bullish move could continue. If price is initially bearish, buying opportunities could exist around the dynamic support of the moving averages and around the trend support lines.

The Bank of Australia have decided to hold rates at the low of 1.50% – this as well as other poor economic data has contributed to some weakness in the Australian Dollar. As expected, the Fed hasn’t changed US rates but have kept them at the low rate 0.50% – this has contributed to some weakness in the US Dollar. US Crude Oil Inventories data is set to be released at 1430 UTC today.

EURGBP – 1 Hour Chart

The EURGBP continues to be very bullish. The moving averages are also very bullish but are tightening very slightly. Price has formed a potential upwards channel but the channel is very aggressive and the channel support may not hold. Buying opportunities could exist around the bullish moving averages and around the channel support area.

As expected, the Bank of England have cut rates and have also increased their QE program. This has provided weakness for the GBP. Most experts believe that the GBP will continue to weaken long-term. The future of the Euro is very unclear at this point. There is no major scheduled news today that will directly impact this currency pair.

EURUSD – 1 Hour Chart

The EURUSD was bullish during yesterday’s trading sessions. Price has moved and closed above the moving averages and the trend resistance line, suggesting that the bearish move may be over. The bearish moving averages are starting to look more bullish and could cross bullish during today’s trading sessions. Price has also formed a trend support line. Buying opportunities could exist around the dynamic support of the moving averages and around the trend support area.

The future of the Euro is very unclear (not uncertain, just indecisive). As expected, the Fed hasn’t changed US rates but have kept them at the low rate of 0.50% – this has contributed to some weakness in the US Dollar. The EURUSD had been rallying since the Fed announcement but is currently retracing the bullish move after positive US employment related data. Price may now have some clear price direction. US Crude Oil Inventories data is set to be released at 1430 UTC today.

GBPUSD – 1 Hour Chart

As suggested in yesterday’s chart analysis, the GBPUSD was looking over-extended and has since been bullish. Price is currently finding resistance around the longer-term moving average and the previous consolidation support. The moving averages are bearish but are starting to tighten, suggesting that price may attempt to move above the resistance area at 1.3075-1.3095. Price may also be forming an inverted head and shoulder pattern. Buying opportunities could exist as price completes the inverted head and shoulder pattern and if price moves above the resistance area.

The Bank of England have cut rates as expected and have also increased their QE program. This has provided weakness for the GBP. Most experts believe that the GBP will continue to weaken long-term. US Crude Oil Inventories data is set to be released at 1430 UTC today.

NZDUSD – 1 Hour Chart

The NZDUSD was very bullish during yesterday’s trading sessions. Price has closed above the moving averages and the trend resistance line, suggesting that price may continue to be bullish. The moving averages confirm this, they are likely to cross bullish. Buying opportunities could exist around the dynamic support of the moving averages and around the previous trend resistance area (now support).

Positive US Employment related data has given strength to the US Dollar. The economy of New Zealand continues to seem steady. US Crude Oil Inventories data is set to be released at 1430 UTC today. The Reserve Bank of New Zealand is expected to announce a cut in interest rates at 2100 UTC. This will be followed by a press conference at 2200 UTC. Expect a lot of volatility and large movements on NZD pairs during the Asian trading session.

USDCAD – 1 Hour Chart

As mentioned in yesterday’s chart analysis, the USDCAD was struggling to move above the horizontal resistance at 1.3185 and has since moved much lower. Price is now looking a little indecisive and lacking market direction. The moving averages confirm this – they have crossed several times over the last few weeks. Buying opportunities could exist around the horizontal support at 1.3000.

Positive US Employment related data has given strength to the US Dollar. US Crude Oil Inventories data is set to be released at 1430 UTC today.

USDCHF – 1 Hour Chart

Price reached the previous horizontal support at 0.9845 (identified in yesterday’s chart analysis) and has since moved lower. Price has moved and closed below the shorter-term moving average and the trend support line but is finding support around the longer-term moving average. There are a lot of mixed technical signals on this pair (a lot of other USD pairs are showing similar price action). Buying opportunities could exist around the longer-term moving average and if price moves above the horizontal resistance at 0.9845. Selling opportunities could exist around the previous trend support area and if the horizontal resistance holds.

Positive US Employment related data has given strength to the US Dollar. US Crude Oil Inventories data is set to be released at 1430 UTC today.

USDJPY – 1 Hour Chart

The USDJPY is currently finding support around the diagonal support area identified on the chart. The moving averages are bullish, suggesting that price could move higher in today’s trading sessions. Price has formed a potential tightening consolidation pattern – price could move between the consolidation support and resistance in coming trading sessions.

Positive US Employment related data has given strength to the US Dollar. The recent Japanese Monetary Policy Statement and announcement from the BOJ has provided some strength to the Yen – most experts were expecting a greater stimulus package. US Crude Oil Inventories data is set to be released at 1430 UTC today.

XAUUSD – 1 Hour Chart

As mentioned in yesterday’s chart analysis, GOLD is consolidating between a diagonal resistance and diagonal support – forming a tightening consolidation pattern. Price moved off the consolidation support area during yesterday’s trading sessions and is now nearing the consolidation resistance. Selling opportunities could exist around the consolidation resistance.

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