Intraday Forex Analysis – 1 Hour Charts – October 17, 2016

AUDUSD – 1 Hour Chart

As suggested in Friday’s chart analysis, price was bullish during Friday’s trading sessions. As also suggested, price has found support around the shorter-term moving average and is currently bullish. The moving averages have crossed bullish and are widening, suggesting that price could move higher. Buying opportunities could exist around the moving averages and around the previous horizontal resistance (now support) at 0.7585. A bullish move could stall or reverse around the horizontal resistance at 0.7640.

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. There is a speech from the Reserve Bank of Australia today at 2110 UTC.

EURGBP – 1 Hour Chart

Price moved slightly lower during Friday’s trading sessions (as suggested in Friday’s chart analysis). The EURGBP is ranging between the horizontal levels at 0.8980 and 0.9050. The moving averages confirm this – they are crossing frequently and moving sideways. Trading opportunities could exist around the range support and resistance levels and if price moves out of the range (break-out trade).

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. The ECB President will speak at 1735 UTC today.

EURUSD – 1 Hour Chart

The EURUSD was very bearish during Friday’s trading sessions. The bearish moving averages are tightening and slowly becoming more bullish, suggesting that price may start retracing some of the recent bearish move. Selling opportunities could exist around the dynamic resistance of the moving averages, around the horizontal support turned resistance at 1.1000 and around the trend resistance area.

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. The ECB President will speak at 1735 UTC today.

GBPUSD – 1 Hour Chart

As suggested in Friday’s chart analysis, the GBPUSD has started ranging and price is moving between the horizontal support and resistance levels identified on the above chart. The moving averages continue to tighten and are moving sideways – confirming the lack of direction and current range. Trading opportunities could exist around the identified support and resistance areas and if price moves out of the range (break-out trade).

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

NZDUSD – 1 Hour Chart

As suggested in Friday’s chart analysis, price has found support around the moving averages and the horizontal resistance turned support and is currently bullish. The moving averages have crossed bullish and are widening, suggesting that price could move higher. Buying opportunities could exist around the moving averages and around the horizontal support at 0.7085. A bullish move may stall or reverse around the horizontal resistance at 0.7120 and/or 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. New Zealand CPI data is set to be released at 2145 UTC today.

USDCAD – 1 Hour Chart

Price continues to look 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. There is no major scheduled news that will directly impact this pair during today’s trading sessions.

USDCHF – 1 Hour Chart

The USDCHF has been finding support around the trend support area and the longer-term moving average (identified in Friday’s chart analysis). Price action is looking very bullish but the bullish moving averages are tightening and could cross bearish – suggesting that the horizontal resistance could hold and price may start retracing. Trading opportunities could exist around the various support and resistance areas identified on the above chart.

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. There is no major scheduled news that will directly impact this pair during today’s trading sessions.

USDJPY – 1 Hour Chart

Price is looking a little choppy and indecisive. The moving averages are slightly bullish though, suggesting that price could move higher. Buying opportunities could exist around the dynamic support of the moving averages, around the trend support area, around the horizontal support areas and if price moves above the horizontal resistance levels at 104.35 and 104.55. A bullish move may stall or reverse around the horizontal resistance areas.

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. There is no major scheduled news that will directly impact this pair during today’s trading sessions.

XAUUSD – 1 Hour Chart

GOLD continues to be bearish. Price is moving within a bearish channel. The moving averages are crossing frequently and moving sideways, suggesting that the bearish momentum could be coming to an end. Selling opportunities could exist around the channel resistance area. A bearish move may stall or reverse around the channel support area and around the horizontal support at 1246.00.

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