Intraday Forex Analysis – 1 Hour Charts – October 14, 2016

AUDUSD – 1 Hour Chart

The AUDUSD was very bullish during yesterday’s trading sessions. Price has moved above the recent bearish consolidation area and also above the moving averages, suggesting that price could start an uptrend. The moving averages are tightening and becoming more bullish, also suggesting that price may move higher. Buying opportunities could exist around the moving averages and around the previous consolidation resistance as support.

The Bank of Australia have again decided to hold rates at the low of 1.50%.The Australian Dollar continues to be attractive to currency investors due to the yield on carry trades. US Fed Chair Yellen recently suggested that there could be a US rate hike before the end of this year. Though recent US economic news has been disappointing and the Presidential election nears, shedding some doubt on a rate hike being sooner rather than later. Most economists believe that a US rate hike could happen in December. US PPI and Retail Sales data is set to be released today at 1230 UTC. This is followed by a Preliminary Consumer Sentiment figure at 1400 UTC. The Fed Chair (Yellen) will speak at 1730 UTC. It is likely to be an active afternoon for the USD.

EURGBP – 1 Hour Chart

Price moved in a general sideways direction during yesterday’s trading sessions. The moving averages have crossed bearish, suggesting that price may start moving lower. Selling opportunities may exist if price moves below the horizontal support levels identified on the above chart and around the moving averages. A bearish move may stall or reverse around the horizontal support at 0.8960.

The British Prime Minister has announced that Article 50 will be triggered by the end of March 2017. This has caused a sterling sell-off as the 2 year of negotiations for leaving the EU nears. Most economists believe that sterling will continue to weaken long-term. There is no major scheduled news today that will directly impact this pair.

EURUSD – 1 Hour Chart

As suggested in yesterday’s chart analysis, price has found resistance around the previous channel support area and is currently bearish. The moving averages are still bearish but they are tightening, suggesting that selling momentum is weakening. Selling opportunities could exist around the previous channel support area (now resistance) and around the dynamic resistance of the moving averages. A bearish move could stall or reverse around the horizontal support at 1.1000.

The future of the Euro is very unclear (not uncertain, just indecisive). US Fed Chair Yellen recently suggested that there could be a US rate hike before the end of this year. Though recent US economic news has been disappointing and the Presidential election nears, shedding some doubt on a rate hike being sooner rather than later. Most economists believe that a US rate hike could happen in December. US PPI and Retail Sales data is set to be released today at 1230 UTC. This is followed by a Preliminary Consumer Sentiment figure at 1400 UTC. The Fed Chair (Yellen) will speak at 1730 UTC. It is likely to be an active afternoon for the USD.

GBPUSD – 1 Hour Chart

Price is currently lacking direction though the overall trend is down. The moving averages confirm the lack of momentum – they are tightening and starting to move sideways. All of this could signal that the GBPUSD is going to start ranging or start recovering (retracing) some of the recent bearish move. Trading opportunities could exist around the identified support and resistance areas on the above chart.

The British Prime Minister has announced that Article 50 will be triggered by the end of March 2017. This has caused a sterling sell-off as the 2 year of negotiations for leaving the EU nears. Most economists believe that sterling will continue to weaken long-term. US Fed Chair Yellen recently suggested that there could be a US rate hike before the end of this year. Though recent US economic news has been disappointing and the Presidential election nears, shedding some doubt on a rate hike being sooner rather than later. Most economists believe that a US rate hike could happen in December. US PPI and Retail Sales data is set to be released today at 1230 UTC. This is followed by a Preliminary Consumer Sentiment figure at 1400 UTC. The Fed Chair (Yellen) will speak at 1730 UTC. It is likely to be an active afternoon for the USD.

NZDUSD – 1 Hour Chart

As suggested in yesterday’s chart analysis, price moved above the trend resistance area during yesterday’s trading sessions and is now bullish. The moving averages are tightening and could cross bullish during today’s trading sessions, suggesting that price may start trending higher. Buying opportunities could exist around the moving averages, around the previous horizontal resistance (now support) at 0.7090 and around the aggressive trend support area. A bullish move may stall or reverse around the horizontal resistance at 0.7185.

New Zealand’s economy continues to seem steady. As expected, the Reserve Bank of New Zealand have held rates at 2.00%. The NZD continues to seem steady and is one of the stronger currencies. The New Zealand Dollar continues to be attractive to currency investors due to the yield on carry trades. US Fed Chair Yellen recently suggested that there could be a US rate hike before the end of this year. Though recent US economic news has been disappointing and the Presidential election nears, shedding some doubt on a rate hike being sooner rather than later. Most economists believe that a US rate hike could happen in December. US PPI and Retail Sales data is set to be released today at 1230 UTC. This is followed by a Preliminary Consumer Sentiment figure at 1400 UTC. The Fed Chair (Yellen) will speak at 1730 UTC. It is likely to be an active afternoon for the USD.

USDCAD – 1 Hour Chart

Price action is looking choppy and indecisive. The moving averages confirm this – they are crossing frequently and moving sideways. Trading opportunities could exist around the identified support and resistance areas on the above chart and if price moves above or below those areas.

US Fed Chair Yellen recently suggested that there could be a US rate hike before the end of this year. Most economists believe that a US rate hike could happen in December. Recent Canadian economic figures have been very positive and the recent appreciation in OIL has given added strength to the Canadian Dollar. US PPI and Retail Sales data is set to be released today at 1230 UTC. This is followed by a Preliminary Consumer Sentiment figure at 1400 UTC. The Fed Chair (Yellen) will speak at 1730 UTC. It is likely to be an active afternoon for the USD.

USDCHF – 1 Hour Chart

As suggested in yesterday’s chart analysis, the USDCAD has found support around the 38.2% Fib level and the longer-term moving average and is currently bullish. The moving averages are bullish but they are also tightening, suggesting that buying momentum may be weakening. Buying opportunities could exist around the trend support area, around the longer-term moving average and around any of the key Fib levels.

US Fed Chair Yellen recently suggested that there could be a US rate hike before the end of this year. Though recent US economic news has been disappointing and the Presidential election nears, shedding some doubt on a rate hike being sooner rather than later. Most economists believe that a US rate hike could happen in December. US PPI and Retail Sales data is set to be released today at 1230 UTC. This is followed by a Preliminary Consumer Sentiment figure at 1400 UTC. The Fed Chair (Yellen) will speak at 1730 UTC. It is likely to be an active afternoon for the USD.

USDJPY – 1 Hour Chart

The USDJPY continues to be bullish. The moving averages are bullish and are showing stronger signs of momentum, suggesting that price could move higher. Buying opportunities could exist around the dynamic support of the moving averages and around the trend support area. Buying opportunities could also exist around the identified horizontal support levels.

The Bank of Japan have announced a slight hike in their rate, from -0.20% to -0.10%. US Fed Chair Yellen recently suggested that there could be a US rate hike before the end of this year. Though recent US economic news has been disappointing and the Presidential election nears, shedding some doubt on a rate hike being sooner rather than later. Most economists believe that a US rate hike could happen in December. US PPI and Retail Sales data is set to be released today at 1230 UTC. This is followed by a Preliminary Consumer Sentiment figure at 1400 UTC. The Fed Chair (Yellen) will speak at 1730 UTC. It is likely to be an active afternoon for the USD.

XAUUSD – 1 Hour Chart

GOLD continues to be range-bound (price is moving within a horizontal channel). The moving averages confirm this – they are moving sideways and are very tight. Trading opportunities could exist around the range support and resistance levels and if price attempts a break-out.

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