Intraday Forex Analysis – 1 Hour Charts – August 19, 2016

AUDUSD – 1 Hour Chart

As suggested in yesterday’s chart analysis, price was rejected around the trend resistance area and moved lower during yesterday’s trading sessions. The moving averages are very indecisive and are providing very little direction. Price continues to down trend though and move between the trend support and trend resistance areas. Selling opportunities could exist around the dynamic resistance of the moving averages and around the trend resistance area.

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

EURGBP – 1 Hour Chart

As suggested in yesterday’s chart analysis, price was bearish and moved lower during yesterday’s trading sessions. As also suggested, the moving averages have crossed bearish. Selling opportunities could exist if price continues to retrace. These opportunities could exist around the dynamic resistance of the moving averages and around the trend resistance area. Longer-term buying opportunities could exist around the 38.2%, 50.0% and 61.8% Fib levels.

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 pair.

EURUSD – 1 Hour Chart

As suggested in yesterday’s chart analysis, the EURUSD was bullish during yesterday’s trading sessions. The bullish move reversed around the identified trend resistance area and is now testing the aggressive trend support area. The moving averages continue to be very bullish but they are starting to show some sign of weakening. Buying opportunities could exist around the trend support area and around the dynamic support of the moving averages.

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

GBPUSD – 1 Hour Chart

The GBPUSD was bullish during yesterday’s trading sessions (as suggested in yesterday’s chart analysis) and has closed above the horizontal resistance area. The moving averages continue to be bullish and are showing little sign of weakening, suggesting that the bullish move could continue. Buying opportunities could exist around the trend support area, around the dynamic support of the bullish moving averages and around the previous horizontal resistance (now support) at 1.3085.

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, though recent positive PPI and CPI data has provided greater hope for the future of sterling and has influenced the GBPUSD to move higher. There is no major scheduled news today that will directly impact this pair.

NZDUSD – 1 Hour Chart

The NZDUSD was bearish during yesterday’s trading sessions. Price continues to move between the horizontal resistance at 0.7300 and the trend support, forming a tightening bullish pattern. Price found support around the longer-term moving average and is nearing the resistance area. The moving averages continue to be bullish but they are tightening and starting to look a bit bearish. Price could continue to move within the pattern in today’s trading sessions. A buying opportunity could exist if price moves above the horizontal resistance area.

Positive US Employment related data has given strength to the US Dollar. The economy of New Zealand continues to seem steady. As expected, the Reserve Bank of New Zealand have lowered the official rate to 2.00%. The NZD gained strength and continues to seem steady even with this potential weakening rate news. There is no major scheduled news today that will directly impact this pair.

USDCAD – 1 Hour Chart

Price continued to move lower during yesterday’s trading sessions. The moving averages continue to look bearish but price is looking a bit over-extended, meaning that price is due a retracement and could be bullish during today’s trading sessions. Selling opportunities could exist around the trend resistance area, around the dynamic resistance of the moving averages and around any of the key Fib levels.

With a recent mix of positive and negative US economic data and with no clear direction on when the next US rate increase will be, the USD continues to be uncertain. Canadian CPI and Retail Sales data is set to be released at 1230 UTC today.

USDCHF – 1 Hour Chart

Just like other USD*** pairs, the USDCHF was bearish during yesterday’s trading sessions and moved lower. The bearish swing is looking a little over-extended now and could start a bullish retracement. The moving averages confirm this, they are bearish but are tightening. Buying opportunities could exist as price retraces. Selling opportunities could exist around the dynamic resistance of the moving averages and around the key Fib levels.

With a recent mix of positive and negative US economic data and with no clear direction on when the next US rate increase will be, the USD continues to be indecisive and a bit uncertain. There is no major scheduled news today that will directly impact this pair.

USDJPY – 1 Hour Chart

The USDJPY is consolidating and lacking short-term direction. Price is finding resistance around the consolidation resistance and around the moving averages. The moving averages continue to be bearish, suggesting that price could move lower. Trading opportunities could exist as price moves out of the consolidation pattern. A downside breakout is likely to bring a bigger price move than a break to the upside.

With a recent mix of positive and negative US economic data and with no clear direction on when the next US rate increase will be, the USD continues to be indecisive and a bit uncertain. 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. There is no major scheduled news today that will directly impact this pair.

XAUUSD – 1 Hour Chart

As suggested in yesterday’s chart analysis (and for several days now), GOLD is consolidating and moving between a clear consolidation support and consolidation resistance. Trading opportunities could exist around the consolidation support and resistance and if price moves out of the consolidation. The moving averages are bullish and price is finding support around the moving averages, suggesting that GOLD could break to the upside of the consolidation.

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