Intraday Forex Analysis – 1 Hour Charts – January 04, 2017

AUDUSD – 1 Hour Chart

As suggested in yesterday’s chart analysis, price came-off the range resistance area during yesterday’s trading sessions. The AUDUSD has formed a tight horizontal channel (0.7190-0.7245) within the original wider channel at 0.7165-0.7245. Trading opportunities could exist at both channels support and resistance areas and if price moves out of either of the channels (break-out trade). The moving averages are moving sideways, confirming the current lack of trend momentum.

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. US Fed Meeting Minutes are set to be released at 1900 UTC today.

EURGBP – 1 Hour Chart

The EURGBP continues to look choppy and lack price direction. The moving averages have crossed bearish though and are widening, suggesting that price could move lower. Trading opportunities could exist around the identified horizontal levels and around the moving averages.

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. UK Construction PMI data is set to be released at 0930 UTC today.

EURUSD – 1 Hour Chart

Price has been bearish but overall the EURUSD is looking slightly choppy and indecisive. The moving averages confirm this- they have crossed several times and are providing no clear market direction. Trading opportunities could exist around the identified horizontal levels and around the moving averages.

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. US Fed Meeting Minutes are set to be released at 1900 UTC today.

GBPUSD – 1 Hour Chart

The GBPUSD is ranging within a horizontal channel at 1.2200-1.2385. The moving averages confirm the current sideways market – they are tight and moving sideways. Trading opportunities could exist around the range support and resistance 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. 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. UK Construction PMI data is set to be released at 0930 UTC today. This is followed by US Fed Meeting Minutes at 1900 UTC.

NZDUSD – 1 Hour Chart

Price continues to range within the horizontal channel identified in yesterday’s chart analysis (0.6865-0.6975) and move sideways. The moving averages confirm the lack of trend direction – they are crossing again and moving sideways. Trading opportunities could exist around the range support and resistance areas and if price moves out of the range (break-out trade).

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. US Fed Meeting Minutes are set to be released at 1900 UTC today.

USDCAD – 1 Hour Chart

As suggested in yesterday’s chart analysis, the USDCAD reversed bearish around the diagonal resistance and the shorter-term moving average. The bearish move was short-lived though and price has since been bullish. Price action has formed a tight range at 1.3400-1.3450 and the USDCAD is moving sideways. Trading opportunities could exist around the range support and resistance and if price moves out of the range (break-out trade).

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. US Fed Meeting Minutes are set to be released at 1900 UTC today.

USDCHF – 1 Hour Chart

Price has reversed bearish around the horizontal resistance at 1.0315 (as suggested in yesterday’s chart analysis). The USDCHF is now looking choppy and indecisive. The moving averages confirm this- they have crossed several times and are providing no clear market direction. Trading opportunities could exist around the identified horizontal levels and around the moving averages.

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. US Fed Meeting Minutes are set to be released at 1900 UTC today.

USDJPY – 1 Hour Chart

As suggested in yesterday’s chart analysis, the USDJPY found support around the trend support line and around the shorter-term moving average. The moving averages are bullish and are widening, suggesting that price could move higher. Buying opportunities could exist around the trend support area, around the dynamic support of the moving averages and if price moves above the horizontal resistance at 118.35. The USDJPY could also stall or reverse around the horizontal resistance.

The Bank of Japan have kept interest rates at a low of -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. US Fed Meeting Minutes are set to be released at 1900 UTC today.

XAUUSD – 1 Hour Chart

GOLD reversed bullish around the trend support area and has since been climbing higher (as suggested in yesterday’s chart analysis). The moving averages are still bullish but are beginning to tighten, suggesting that buying momentum is weakening. Selling opportunities could exist if the horizontal resistance at 1162.10 holds. Buying opportunities could exist around the dynamic support of the moving averages, around the trend support area and if price moves above the horizontal resistance at 1162.10.

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