Intraday Forex Analysis – 1 Hour Charts – November 02, 2016

AUDUSD – 1 Hour Chart

As suggested in yesterday’s chart analysis, the AUDUSD found resistance around the channel resistance area and was then bearish. Price continues to be choppy and indecisive though. The moving averages confirm this – they are crossing frequently and providing no clear direction. Price continues to stay within the bearish channel and consolidation pattern, 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. US Non-Farm Employment data is set to be released at 1215 UTC today. This is followed by US Crude Oil Inventories at 1430 UTC and a Fed Rate announcement and statement at 1800 UTC. It could be a volatile day for USD pairs.

EURGBP – 1 Hour Chart

As suggested in yesterday’s chart analysis, price found support around the longer-term moving average and has since been very bullish. The moving averages are bullish but are tightening, suggesting that price could be losing upside momentum. Buying opportunities could exist around the previous swing high at 0.9020, around the dynamic support of the moving averages, around any of the key Fib levels and around the trend support area. Price may 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. UK Construction data is set to be released at 0930 UTC today.

EURUSD – 1 Hour Chart

As suggested in yesterday’s chart analysis, the EURUSD was bullish during yesterday’s trading sessions and has moved much higher. The moving averages continue to be very bullish, suggesting that price could continue the bullish run. Buying opportunities could exist around the moving averages, around the trend support areas and around the previous horizontal resistance levels at 1.0990 and 1.1020.

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 Non-Farm Employment data is set to be released at 1215 UTC today. This is followed by US Crude Oil Inventories at 1430 UTC and a Fed Rate announcement and statement at 1800 UTC. It could be a volatile day for USD pairs.

GBPUSD – 1 Hour Chart

Price continues to range (move sideways within a horizontal channel) and look very indecisive. The moving averages confirm the lack of price direction – they are moving sideways and are crossing frequently. The GBPUSD has found resistance around the horizontal resistance at 1.2260 as suggested in yesterday’s chart analysis. Trading opportunities could exist around the range and diagonal support and resistance areas, 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. 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. UK Construction data is set to be released at 0930 UTC today. This is followed by US Non-Farm Employment data at 1215 UTC, US Crude Oil Inventories at 1430 UTC and a Fed Rate announcement and statement at 1800 UTC. It could be a volatile day for USD pairs.

NZDUSD – 1 Hour Chart

As suggested in yesterday’s chart analysis, the NZDUSD found support around the shorter-term moving average, moved above the range resistance at 0.7185 and has since been very bullish. The moving averages are bullish and are widening, suggesting that price could move higher. Buying opportunities could exist around the previous range resistance (as support), around the dynamic support of the moving averages and if price moves above the horizontal resistance at 0.7245.

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. US Non-Farm Employment data is set to be released at 1215 UTC today. This is followed by US Crude Oil Inventories at 1430 UTC and a Fed Rate announcement and statement at 1800 UTC. It could be a volatile day for USD pairs.

USDCAD – 1 Hour Chart

Price action has formed a sideways channel and price is ranging. The moving averages are tight and moving sideways – confirming the lack of market direction. Trading opportunities could exist around the range support and resistance areas and if price moves out of the range (break-out trade).

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 mixed. 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. US Non-Farm Employment data is set to be released at 1215 UTC today. This is followed by US Crude Oil Inventories at 1430 UTC and a Fed Rate announcement and statement at 1800 UTC. It could be a volatile day for USD pairs.

USDCHF – 1 Hour Chart

As suggested in yesterday’s chart analysis, price was bearish and has moved much lower. The moving averages are bearish and are widening, suggesting that price could move even lower. Selling opportunities could exist around the dynamic resistance of the bearish moving averages.

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 Non-Farm Employment data is set to be released at 1215 UTC today. This is followed by US Crude Oil Inventories at 1430 UTC and a Fed Rate announcement and statement at 1800 UTC. It could be a volatile day for USD pairs.

USDJPY – 1 Hour Chart

The USDJPY is looking choppy and indecisive. The moving averages have crossed bearish though, suggesting that price could continue the recent bearish run. Selling opportunities could exist around the identified support and resistance areas on the above chart and around the moving averages.

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 Non-Farm Employment data is set to be released at 1215 UTC today. This is followed by US Crude Oil Inventories at 1430 UTC and a Fed Rate announcement and statement at 1800 UTC. It could be a volatile day for USD pairs.

XAUUSD – 1 Hour Chart

As suggested in yesterday’s chart analysis, GOLD has been bullish. The moving averages are bullish and are widening, suggesting that price could move higher. Buying opportunities could exist around the previous channel resistance (as support), around the previous swing high at 1282.40 and around the dynamic support of the moving averages.

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