Intraday Forex Analysis – 1 Hour Charts – December 14, 2016

AUDUSD – 1 Hour Chart

The AUDUSD continues to be choppy and indecisive. The moving averages confirm the lack of market direction – they are crossing frequently. Price is currently finding support around the shorter-term moving average. Trading opportunities could exist around the identified horizontal support and resistance levels and around the moving averages. If the AUDUSD moves above the resistance at 0.7515, price may attempt a bullish 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. US Retail Sales and PPI data is set to be released at 1330 UTC today. This is followed by US Crude Oil Inventories at 1530 UTC. A Fed Rate Announcement is scheduled for 1900 UTC. This is followed by a Fed Press Conference at 1930 UTC. It could be a very volatile evening for the US Dollar.

EURGBP – 1 Hour Chart

Price continues to look indecisive. The moving averages confirm this – they are crossing frequently and providing no clear direction. Trading opportunities could exist around the identified horizontal support and resistance levels and around the moving averages.

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. UK Averages Earnings and Claimant Count data is set to be released at 0930 UTC. This is followed by a Bank of England Speech at 1215 UTC.

EURUSD – 1 Hour Chart

As suggested in yesterday’s chart analysis, the EURUSD found resistance around the longer-term moving average and has been slightly bearish. Just like many currency pairs, the EURUSD is looking indecisive and currently has no clear direction. Trading opportunities could exist around the identified horizontal support and resistance levels and the moving averages.

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 Retail Sales and PPI data is set to be released at 1330 UTC today. This is followed by US Crude Oil Inventories at 1530 UTC. A Fed Rate Announcement is scheduled for 1900 UTC. This is followed by a Fed Press Conference at 1930 UTC. It could be a very volatile evening for the US Dollar.

GBPUSD – 1 Hour Chart

Price continues to look choppy and indecisive. The moving averages are crossing frequently and moving sideways – confirming the market indecision. Trading opportunities could exist around the horizontal support and resistance levels and around the moving averages.

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. UK Averages Earnings and Claimant Count data is set to be released at 0930 UTC. This is followed by a Bank of England Speech at 1215 UTC. US Retail Sales and PPI data is set to be released at 1330 UTC. This is followed by US Crude Oil Inventories at 1530 UTC. A Fed Rate Announcement is scheduled for 1900 UTC. This is followed by a Fed Press Conference at 1930 UTC. It could be a very volatile evening for the US Dollar.

NZDUSD – 1 Hour Chart

The NZDUSD has been bullish and has moved slightly higher. The moving averages have crossed bullish and are widening, suggesting that the bullish move could continue. Buying opportunities could exist around the dynamic support of the moving averages, around the identified horizontal support levels and around any of the key Fib levels. If price moves above the horizontal resistance and previous swing high at 0.7230, the NZDUSD may attempt a bullish move.

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 Retail Sales and PPI data is set to be released at 1330 UTC. This is followed by US Crude Oil Inventories at 1530 UTC. A Fed Rate Announcement is scheduled for 1900 UTC. This is followed by a Fed Press Conference at 1930 UTC. It could be a very volatile evening for the US Dollar.

USDCAD – 1 Hour Chart

Price continues to move within a tight horizontal channel and is ranging. The moving averages are beginning to tighten and move sideways – confirming the sideways price action. Trading opportunities could exist around the range support and resistance areas, around the moving averages and if price moves out of the channel (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 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 Retail Sales and PPI data is set to be released at 1330 UTC. This is followed by US Crude Oil Inventories at 1530 UTC. A Fed Rate Announcement is scheduled for 1900 UTC. This is followed by a Fed Press Conference at 1930 UTC. It could be a very volatile evening for the US Dollar.

USDCHF – 1 Hour Chart

Just like many currency pairs, the USDCHF is indecisive and lacking direction, Price found support around 1.0110 during yesterday’s trading sessions (as identified in yesterday’s chart analysis) but has since moved lower. Trading opportunities could exist around the identified horizontal support and resistance levels and around the moving averages.

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 Retail Sales and PPI data is set to be released at 1330 UTC. This is followed by US Crude Oil Inventories at 1530 UTC. A Fed Rate Announcement is scheduled for 1900 UTC. This is followed by a Fed Press Conference at 1930 UTC. It could be a very volatile evening for the US Dollar.

USDJPY – 1 Hour Chart

The USDJPY is in a retracement phase of an uptrend. The moving averages are tightening and moving sideways, suggesting that price is lacking both buying and selling momentum. Buying opportunities could exist around the longer-term moving average, around the identified horizontal support levels and around 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. 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 Retail Sales and PPI data is set to be released at 1330 UTC. This is followed by US Crude Oil Inventories at 1530 UTC. A Fed Rate Announcement is scheduled for 1900 UTC. This is followed by a Fed Press Conference at 1930 UTC. It could be a very volatile evening for the US Dollar.

XAUUSD – 1 Hour Chart

As suggested in yesterday’s chart analysis, price has moved slightly lower. The bearish move failed to create a lower swing low though and price action is forming a sideway consolidation. The moving averages are bearish, suggesting that GOLD could attempt another bearish move. Selling opportunities could exist around the moving averages, around the horizontal resistance at 1161.90 and around the trend resistance area.

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