Intraday Forex Analysis – 1 Hour Charts – November 03, 2016

AUDUSD – 1 Hour Chart

As identified in yesterday’s chart analysis, the AUDUSD found support around the diagonal support area and then moved higher. Price is now testing the bearish channel resistance area. The moving averages are bullish and are widening, suggesting that price could move higher and potentially break the channel resistance. Buying opportunities could exist around the bullish moving averages, around the diagonal support area and if price moves above the horizontal resistance at 0.7680. A bullish move could stall or reverse around any of the horizontal resistance levels identified on the above chart.

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 Unemployment Claims data is set to be released at 1230 UTC today. This is followed by Non-Manufacturing PMI data at 1400 UTC.

EURGBP – 1 Hour Chart

As suggested in yesterday’s chart analysis, price found support around the 50.0% Fib level, the moving averages and trend support area during yesterday’s trading sessions. Price is testing the same support area again. 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 trend support area and around the horizontal support areas identified on the above chart. A bullish move may stall or reverse around the previous swing high at 0.9045.

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 PMI data is set to be released at 0930 UTC. This is followed by a EU Membership Court Ruling at 1000 UTC, Bank of England Reports and a Rate announcement at 1200 UTC and a Bank of England speech at 1230 UTC. It is likely to be a very active day for the GBP.

EURUSD – 1 Hour Chart

As suggested in yesterday’s chart analysis, the EURUSD continued it’s bullish run and has moved higher. The moving averages are still bullish but price is now looking a little over-extended, suggesting that price may start retracing. If price does retrace, buying opportunities could exist around the moving averages, around the trend support area, around any of the key Fib levels and around the previous horizontal resistance at 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 Unemployment Claims data is set to be released at 1230 UTC today. This is followed by Non-Manufacturing PMI data at 1400 UTC.

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. Trading opportunities could exist around the range, horizontal 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 PMI data is set to be released at 0930 UTC. This is followed by a EU Membership Court Ruling at 1000 UTC, Bank of England Reports and a Rate announcement at 1200 UTC and a Bank of England speech at 1230 UTC. It is likely to be a very active day for the GBP. US Unemployment Claims data is set to be released at 1230 UTC. This is followed by Non-Manufacturing PMI data at 1400 UTC.

NZDUSD – 1 Hour Chart

As suggested in yesterday’s chart analysis, the NZDUSD was very bullish and has moved much higher. The moving averages continue to be very bullish and are widening, suggesting that price could move higher. Price action is looking over-extended though, so price may soon start retracing. If price does start retracing, buying opportunities could exist around the moving averages and around any of the key Fib levels.

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 Unemployment Claims data is set to be released at 1230 UTC today. This is followed by Non-Manufacturing PMI data at 1400 UTC.

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 Unemployment Claims data is set to be released at 1230 UTC today. This is followed by Non-Manufacturing PMI data at 1400 UTC.

USDCHF – 1 Hour Chart

As suggested in yesterday’s chart analysis, the USDCHF was bearish and has moved lower. The moving averages continue to be very bullish and are widening, suggesting that price could move even lower. Price action is looking over-extended though, so price may soon start retracing. If price does start retracing, selling opportunities could exist around the moving averages 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 Unemployment Claims data is set to be released at 1230 UTC today. This is followed by Non-Manufacturing PMI data at 1400 UTC.

USDJPY – 1 Hour Chart

Price was bearish and has moved lower. The moving averages continue to be very bullish and are widening, suggesting that price could move even lower. Price action is looking over-extended though, so price may soon start retracing. If price does start retracing, selling opportunities could exist around the moving averages and around any of the key Fib 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 Unemployment Claims data is set to be released at 1230 UTC today. This is followed by Non-Manufacturing PMI data at 1400 UTC.

XAUUSD – 1 Hour Chart

As suggested in yesterday’s chart analysis, GOLD was bullish during yesterday’s trading sessions and has moved higher. The moving averages continue to be very bullish and are widening, suggesting that price could move higher. Price action is looking over-extended though, so price may soon start retracing. If price does start retracing, buying opportunities could exist around the moving averages, around any of the key Fib levels and around the previous channel resistance area.

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