Intraday Forex Analysis – 1 Hour Charts – October 28, 2016

AUDUSD – 1 Hour Chart

As suggested in yesterday’s chart analysis, the AUDUSD found support around the horizontal support at 0.7585 but the bullish move off the support has been reversed. Price continues to be choppy and indecisive. The moving averages confirm this – they are crossing frequently and providing no clear direction. Trading opportunities could exist around the identified horizontal support and resistance areas and around the moving averages.

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. A US Advance GDP figure is set to be released at 1230 UTC today.

EURGBP – 1 Hour Chart

As suggested in yesterday’s chart analysis, price reversed slightly bearish around the range resistance area. Price is ranging (moving sideways) between a horizontal support around 0.8885 and a horizontal resistance around 0.8975. The moving averages confirm the lack of price direction – they are moving sideways. Trading opportunities could exist around the range support and resistance, around the moving averages 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. There is no major scheduled news that will directly impact this pair during today’s trading sessions.

EURUSD – 1 Hour Chart

As suggested in yesterday’s chart analysis, the EURUSD was initially bullish but reversed around the identified trend resistance area. The moving averages have crossed bullish and are widening, suggesting that price could move higher. Buying opportunities could exist around the dynamic support of the moving averages, around the previous horizontal resistance at 1.0890 and around the trend resistance as support. A bullish move could stall or reverse around the previous horizontal support level around 1.0960.

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. A US Advance GDP figure is set to be released at 1230 UTC today.

GBPUSD – 1 Hour Chart

Price continues to range (move sideways within a horizontal channel) between the horizontal support around 1.2100 and the horizontal resistance around 1.2320. The moving averages confirm the lack of price direction – they are moving sideways and are crossing frequently. Trading opportunities could exist around the range support and resistance 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. A US Advance GDP figure is set to be released at 1230 UTC today.

NZDUSD – 1 Hour Chart

As suggested in yesterday’s chart analysis, the NZDUSD found support around the horizontal support at 0.7115 and has since been bullish. Price is looking a little choppy but there is some bearish price direction. The moving averages confirm the slight lack of indecision – they are crossing frequently and are tight. Trading opportunities could exist around the identified support and resistance areas and around the moving averages.

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. A US Advance GDP figure is set to be released at 1230 UTC today.

USDCAD – 1 Hour Chart

As suggested in yesterday’s chart analysis, price reversed around the horizontal resistance at 1.3400 and has found support around the shorter-term moving average. The bullish moving averages are tightening, suggesting that buying momentum is weakening. If price moves below the moving averages and trend support, price could attempt a move lower. A bearish move may stall or reverse around the horizontal support at 1.3280. Buying opportunities could exist if price moves above the horizontal resistance at 1.3390, around the moving averages, around the trend support area and the horizontal support level.

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 poor but the recent appreciation in OIL has given some strength to the Canadian Dollar. The most recent Rate announcement and BOC press conference did not provide any suggestion that there will be a rate hike any time soon though. A US Advance GDP figure is set to be released at 1230 UTC today.

USDCHF – 1 Hour Chart

The USDCHF is indecisive. The moving averages confirm this – they are very tight and are moving sideways. Trading opportunities could exist around the moving averages and around the horizontal support and resistance areas.

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. A US Advance GDP figure is set to be released at 1230 UTC today.

USDJPY – 1 Hour Chart

The USDJPY was very bullish during yesterday’s trading sessions (as suggested in yesterday’s chart analysis).The moving averages are bullish and are widening, suggesting that price could move higher. Buying opportunities could exist around the dynamic support of the moving averages, around the previous swing high at 104.85 and around the trend support area.

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. A US Advance GDP figure is set to be released at 1230 UTC today.

XAUUSD – 1 Hour Chart

GOLD is looking choppy and indecisive. The moving averages confirm this – they are crossing frequently and providing no clear direction. Trading opportunities could exist around the identified support and resistance areas on the above chart.

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