Intraday Forex Analysis – 1 Hour Charts – October 31, 2016

AUDUSD – 1 Hour Chart

Price continues to be choppy and indecisive. The moving averages confirm this – they are crossing frequently and providing no clear direction. Price could be forming a bearish channel or consolidation, suggesting that price could move lower over coming days. Trading opportunities could exist around the identified 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. There is no major scheduled news that will directly impact this pair during today’s trading sessions.

EURGBP – 1 Hour Chart

As suggested in Friday’s chart analysis, the EURGBP moved above the range resistance and has been slightly bullish. The moving averages are bullish and are widening, suggesting that price could move higher. Buying opportunities could exist around the previous range resistance area (as support), around the dynamic support of the moving averages and the trend support area. A bullish move could stall or reverse around the horizontal resistance at 0.9050.

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 Friday’s chart analysis, price has been bullish and has moved higher. The moving averages are bullish and are widening, suggesting that price could move higher. Buying opportunities could exist around the moving averages, around the previous horizontal resistance levels at 1.0930 and 1.0890 and around the trend support 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. There is no major scheduled news that will directly impact this pair during today’s trading sessions.

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. Price has also formed a tightening consolidation pattern. Trading opportunities could exist around the range and consolidation support and resistance and if price moves out of the range or consolidation (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 during today’s trading sessions.

NZDUSD – 1 Hour Chart

The NZDUSD 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. Price is currently moving within a horizontal channel, 0.7115-0.7180. Trading opportunities could exist around the identified horizontal support and resistance areas, around the moving averages and if price moves out of the horizontal channel (break-out trade). If price breaks to the downside, price could stall or reverse around the horizontal support at 0.7075.

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

USDCAD – 1 Hour Chart

As suggested in Friday’s chart analysis, price found support around the trend support area and has since been bullish. The bullish move has been weak though, it seems that buying momentum is weakening (as also suggested). The bullish moving averages seem steady, suggesting that price could move lower. 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 around the moving averages, around the trend support area and around the previous horizontal resistance (now support) at 1.3400.

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

USDCHF – 1 Hour Chart

As suggested in Friday’s chart analysis, the USDCHF found support around the identified horizontal support levels around 0.9860-0.9865. The USDCHF is looking indecisive and lacking clear market direction. The moving averages confirm this – they have been crossing frequently. They are bearish and widening though, suggesting that price could move lower. Selling opportunities could exist around the moving averages, around the horizontal support turned resistance at 0.9910 and if price moves below the horizontal support area around 0.9860-0.9865.

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 has been bearish as it has retraced some of the recent bullish move. The moving averages are bullish though and are widening, suggesting that price may attempt a swing higher. Buying opportunities could exist around the trend support area, around the moving averages, around the horizontal support at 104.15 and if price moves above the horizontal resistance at 105.40. A bullish move may stall or reverse around the horizontal resistance at 105.40.

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

As identified in Friday’s chart analysis, GOLD found support around the horizontal support at 1265.50 and has since been bullish. The moving averages are still not providing any clear direction – they are crossing frequently and are signalling indecision. Price action looks bullish though. Buying opportunities could exist around the dynamic support of the moving averages, around the trend support area and around the horizontal support areas at 1275.50, 1265.50 and 1262.00.

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