Inter-day Forex Analysis – Daily Charts – November 17, 2016

AUDUSD – Daily Chart

The AUDUSD is ranging between the horizontal support at 0.7450 and the horizontal resistance at 0.7760. Price is currently around the range support area. The moving averages are bullish and steady but price is below the moving averages, suggesting that price could move lower. Selling opportunities could exist around the moving averages and if price moves below the range support area. A bearish move could stall or reverse around the horizontal support levels at 0.7325 and 0.7175.

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. The US Presidential Election result may be a game-changer for the Australian Dollar though. Fears over how a Trump led US will negatively impact the Australian economy are already showing. 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.

EURUSD – Daily Chart

Price has been bearish and has been down-trending. The moving averages have crossed bearish, suggesting that price could move lower. Selling opportunities could exist around the previous consolidation support area (now resistance), around the previous horizontal support at 1.0860 and around the dynamic resistance of the moving averages. A bearish move could stall or reverse around the horizontal support at 1.0560.

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. Most economists believe that a US rate hike could happen in December. Some economists are expecting parity between the EUR and USD (1.0000).

NZDUSD – Daily Chart

The NZDUSD recently failed to make a swing higher and has since been bearish. The bullish moving averages are beginning to move sideways and price is below one of the moving averages, suggesting that price could continue to move lower. Selling opportunities could exist around the newly formed trend resistance line and if price moves below the horizontal support levels at 0.7040 and 0.6980.

New Zealand’s economy continues to seem steady. As expected, the Reserve Bank of New Zealand have cut rates by 25 points, bring their official rate to 1.75%. 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.

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