Intraday Forex Analysis – 1 Hour Charts – December 16, 2016

AUDUSD – 1 Hour Chart

As suggested in yesterday’s chart analysis, the AUDUSD moved below the horizontal support at 0.7375 and has since been bearish. The moving averages are bearish and are widening, suggesting that price could continue to move lower. Selling opportunities could exist around the identified horizontal resistance levels, around the dynamic resistance of the moving averages and around any of the key Fib levels.

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. There are concerns over how a Trump led US could negatively impact the Australian economy. The US Federal Reserve have increased interest rates to 0.75%. The US Dollar could continue to strengthen long-term, if further rate hikes are expected. A US Building Permits figure is set to be released at 1330 UTC today.

EURGBP – 1 Hour Chart

Price was bullish during yesterday’s trading sessions but the EURGBP continues to be choppy and indecisive. The moving averages confirm the market indecision – they are tight and moving sideways. Trading opportunities could exist around the identified horizontal support and resistance levels and around the identified diagonal resistance area.

The British Prime Minister has announced that Article 50 will be triggered by the end of March 2017. Most economists believe that sterling will continue to weaken long-term. There is no major scheduled news today that will directly impact this pair.

EURUSD – 1 Hour Chart

As suggested in yesterday’s chart analysis, the EURUSD has been bearish and has moved lower. The moving averages are bearish and are widening, suggesting that price could continue to downtrend. Selling opportunities could exist around the bearish moving averages, around the identified horizontal resistance levels, around any of the key Fib levels and around the trend resistance area. The EURUSD could stall or reverse around the previous swing low at 1.0370.

The future of the Euro is very unclear (not uncertain, just indecisive). Some economists are expecting a 1.0000 parity between the Euro and US Dollar. The US Federal Reserve have increased interest rates to 0.75%. The US Dollar could continue to strengthen long-term, if further rate hikes are expected. A US Building Permits figure is set to be released at 1330 UTC today.

GBPUSD – 1 Hour Chart

Price has moved lower and has been bearish (as suggested in yesterday’s chart analysis). As also suggested, the moving averages crossed bearish. Selling opportunities could exist around any of the key Fib levels, around the dynamic resistance of the moving averages and around the horizontal resistance at 1.2550. The GBPUSD could stall or reverse around the previous swing low at 1.2385.

The British Prime Minister has announced that Article 50 will be triggered by the end of March 2017. The US Federal Reserve have increased interest rates to 0.75%. The US Dollar could continue to strengthen long-term, if further rate hikes are expected. A US Building Permits figure is set to be released at 1330 UTC today.

NZDUSD – 1 Hour Chart

The NZDUSD moved lower and was been bearish during yesterday’s trading sessions (as suggested in yesterday’s chart analysis). As also suggested, the moving averages have crossed bearish and are widening. Selling opportunities could exist around any of the key Fib levels, around the dynamic resistance of the moving averages and around the identified horizontal resistance levels.

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. The US Federal Reserve have increased interest rates to 0.75%. The US Dollar could continue to strengthen long-term, if further rate hikes are expected. A US Building Permits figure is set to be released at 1330 UTC today.

USDCAD – 1 Hour Chart

As suggested in yesterday’s chart analysis, price has been bullish and has moved higher. The USDCAD is now retracing some of the recent bullish move. The moving averages are bullish and are widening, suggesting that price could continue to uptrend. Buying opportunities could exist around any of the key Fib levels and around the dynamic support of the moving averages.

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. The appreciation of OIL has given some strength to the Canadian Dollar. The US Federal Reserve have increased interest rates to 0.75%. The US Dollar could continue to strengthen long-term, if further rate hikes are expected. A US Building Permits figure is set to be released at 1330 UTC today.

USDCHF – 1 Hour Chart

The USDCHF has been bullish and has moved much higher (as suggested in yesterday’s chart analysis). The moving averages are bullish and are widening, suggesting that price could continue to uptrend. Price is currently finding support around the 23.6% Fib level. Buying opportunities could exist around any of the key Fib levels, around the bullish moving averages and around the horizontal support at 1.0200.

The US Federal Reserve have increased interest rates to 0.75%. The US Dollar could continue to strengthen long-term, if further rate hikes are expected. A US Building Permits figure is set to be released at 1330 UTC today.

USDJPY – 1 Hour Chart

Price continues to move higher and be bullish (as suggested in yesterday’s chart analysis). The moving averages confirm the buying momentum – they are bullish and are widening. Buying opportunities could exist around the dynamic support of the moving averages.

The Bank of Japan recently announced a slight hike in their national interest rate, from -0.20% to -0.10%. The US Federal Reserve have increased interest rates to 0.75%. The US Dollar could continue to strengthen long-term, if further rate hikes are expected. A US Building Permits figure is set to be released at 1330 UTC today.

XAUUSD – 1 Hour Chart

As suggested in yesterday’s chart analysis, GOLD has moved lower and has been bearish. The moving averages are bearish and are widening, suggesting that price could still move lower. GOLD is currently retracing though and is bullish. Selling opportunities could exist around any of the key Fib levels and around the dynamic resistance of the moving averages. Price could stall or reverse around the previous swing low at 1124.00.

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