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

AUDUSD – 1 Hour Chart

Price has been moving in a general sideways direction but has recently found resistance around the shorter-term moving average and is bearish (as suggested in yesterday’s chart analysis). The moving averages are bearish and are widening, suggesting that price could move lower. Selling opportunities could exist around the dynamic resistance of the moving averages, around the horizontal resistance at 0.7440 and if price moves below the horizontal support at 0.7370. If price moves above the moving averages and above the horizontal resistance, price may attempt a move higher.

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. US Non-Farm Payroll data is set to be released at 1330 UTC today. This event is likely to cause volatility across all currency pairs. US Hourly Earning and Unemployment data will be released at the same time.

EURGBP – 1 Hour Chart

As suggested in yesterday’s chart analysis, the EURGBP was rejected at the previous support around 0.8480 and was bearish. Price has since reversed the bearish move but has once again come off the previous support area. The moving averages are bearish and are widening, suggesting that the EURGBP could attempt a swing lower. Selling opportunities could exist around the dynamic resistance of the moving averages, around the newly formed horizontal resistance at 0.8480 and around the longer-term trend resistance. Price could stall or reverse around the horizontal support at 0.8375.

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 Court law has put a current hold on triggering Article 50. The British government will now have to go through UK parliament to trigger Article 50. This has given strength to the GBP, as Brexit may now not be such a “hard” Brexit and there is the slightest chance that Article 50 may now never be triggered. A UK Construction PMI figure is set to be released at 0930 UTC today. US Non-Farm Payroll data is set to be released at 1330 UTC. This event is likely to cause volatility across all currency pairs.

EURUSD – 1 Hour Chart

As suggested in yesterday’s chart analysis, price found support around the diagonal support area and has moved out of the horizontal channel. The moving averages are bullish, suggesting that price could trend higher. Buying opportunities could exist around the previous range resistance at 1.0660, around the bullish moving averages and around the identified trend support areas.

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. A Trump led US may cause strength in the USD. US Non-Farm Payroll data is set to be released at 1330 UTC today. This event is likely to cause volatility across all currency pairs. US Hourly Earning and Unemployment data will be released at the same time.

GBPUSD – 1 Hour Chart

The GBPUSD has been very bullish and has moved much higher (as suggested in yesterday’s chart analysis). The moving averages are very bullish and are widening, suggesting that the upwards price direction could continue. Buying opportunities could exist around the moving averages, around the trend support area and around the previous consolidation resistance at 1.2525.

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 Court law has put a current hold on triggering Article 50. The British government will now have to go through UK parliament to trigger Article 50. This has given strength to the GBP, as Brexit may now not be such a “hard” Brexit and there is the slightest chance that Article 50 may now never be triggered. US Fed Chair Yellen recently suggested that there could be a US rate hike before the end of this year. A UK Construction PMI figure is set to be released at 0930 UTC today. US Non-Farm Payroll data is set to be released at 1330 UTC. This event is likely to cause volatility across all currency pairs. US Hourly Earning and Unemployment data will be released at the same time.

NZDUSD – 1 Hour Chart

As suggested in yesterday’s chart analysis, price found support around the 61.8% Fib level and attempted a bullish move higher. The moving averages have crossed bearish and price is below the moving averages, suggesting that price attempt a move lower. Selling opportunities could exist around the dynamic resistance of the moving averages and if the NZDUSD moves below the horizontal support at 0.7050.

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. US Non-Farm Payroll data is set to be released at 1330 UTC today. This event is likely to cause volatility across all currency pairs. US Hourly Earning and Unemployment data will be released at the same time.

USDCAD – 1 Hour Chart

The USDCAD was rejected around the shorter-term moving average and the trend resistance area and has since been very bearish (as suggested in yesterday’s chart analysis). The moving averages are bearish and are widening, suggesting that the downwards price action could continue. Selling opportunities could exist around any of the key Fib levels, around the previous consolidation support at 1.3365, around the bearish moving averages and around the trend resistance area.

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. A Trump led US could provide some strength in the USD. 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 Payroll data is set to be released at 1330 UTC today. This event is likely to cause volatility across all currency pairs. US and Canadian Unemployment data will be released at the same time.

USDCHF – 1 Hour Chart

Price continues to range and move within a horizontal channel. The moving averages confirm the lack of direction – they are moving sideways and are tight. 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. A Trump led US may cause weakness in the USD and possible strength to the CHF (safe-haven currency). US Non-Farm Payroll data is set to be released at 1330 UTC today. This event is likely to cause volatility across all currency pairs. US Hourly Earning and Unemployment data will be released at the same time.

USDJPY – 1 Hour Chart

As suggested in yesterday’s chart analysis, the USDJPY has found support around the shorter-term moving average and around the previous swing high. The moving averages are bullish and are widening, suggesting that price could move higher. Buying opportunities could exist around the previous channel resistance at 113.75, around the bullish moving averages and if price moves above the horizontal resistance at 114.65.

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. Most economists believe that a US rate hike could happen in December. A Trump led US may cause weakness in the USD and possible strength to the JPY (safe-haven currency). US Non-Farm Payroll data is set to be released at 1330 UTC today. This event is likely to cause volatility across all currency pairs. US Hourly Earning and Unemployment data will be released at the same time.

XAUUSD – 1 Hour Chart

GOLD was slightly bearish during yesterday’s trading sessions and was able to push slightly lower (as suggested in yesterday’s chart analysis). The moving averages are bearish and are widening, suggesting that price could still move lower. Selling opportunities could exist around the dynamic resistance of the moving averages and around the trend resistance area. GOLD is looking a little over-extended now and could be due a bullish retracement sometime soon. Price may reverse bullish around the previous swing low at 1161.90.

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