Intraday Forex Analysis – 1 Hour Charts – January 24, 2017
AUDUSD – 1 Hour Chart
As suggested in yesterday’s chart analysis, the AUDUSD found support around the longer-term moving average and trend support area and has moved higher. The moving averages are tight and are starting to move sideways, suggesting that buying momentum is weakening and could soon be bearish. Selling opportunities may exist around the previous swing high at 0.7600. Price may stall or reverse bullish around the moving averages, around the trend support area and around the horizontal support levels at 0.7525 & 0.7500.
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. 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. The President Elect’s latest speech provided no fiscal or economic stimulus details, causing the US Dollar to weaken. There is no major scheduled news that will directly impact this pair during today’s trading sessions.
EURGBP – 1 Hour Chart
The EURGBP has been bearish and has moved lower. Price is clearly down-trending. The moving averages confirm this – they are bearish and steady. Shorting opportunities could exist around the previous swing low at 0.8610, around the dynamic resistance of the moving averages, around the trend resistance area and around the horizontal resistance at 0.8665.
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. British Prime Minister Theresa May has provided Brexit negotiation details and announced what deal the UK government would like as they leave the EU. This has given strength to the GBP. The UK Supreme Court will announce today if the UK Government has the power to trigger article 50. This should be announced around 0930 UTC.
EURUSD – 1 Hour Chart
Price found support around the previous swing high at 1.0715 and has been bullish (as suggested in yesterday’s chart analysis). The EURUSD is clearly up-trending. The moving averages are bullish and are widening, suggesting that price could continue to uptrend. Long opportunities could exist around the bullish moving averages and around the horizontal support levels at 1.0715 & 1.0695.
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. The President Elect’s latest speech provided no fiscal or economic stimulus details, causing the US Dollar to weaken. There is no major scheduled news that will directly impact this pair during today’s trading sessions.
GBPUSD – 1 Hour Chart
As suggested in yesterday’s chart analysis, the GBPUSD has been bullish and has moved much higher, after finding support around the previous horizontal resistance. Price may now have some direction after the recent consolidation and indecision. Buying opportunities could exist around the dynamic support of the moving averages, around the horizontal support levels at 1.2415 & 1.2365 and around the trend support area. The moving averages are bullish and are widening, signalling that price could continue to uptrend.
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. The President Elect’s latest speech provided no fiscal or economic stimulus details, causing the US Dollar to weaken. British Prime Minister Theresa May has provided Brexit negotiation details and announced what deal the UK government would like as they leave the EU. This has given strength to the GBP. President-Elect Trump is due to speak again during today’s trading sessions. The UK Supreme Court will announce today if the UK Government has the power to trigger article 50. This should be announced around 0930 UTC.
NZDUSD – 1 Hour Chart
The NZDUSD has been bullish and has moved higher. Price is clearly up-trending. The moving averages are bullish again and are widening, suggesting that the NZDUSD could attempt a move higher. Buying opportunities could exist around the previous horizontal resistance at 0.7215, around the dynamic support of the moving averages and around the trend support area.
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. The President Elect’s latest speech provided no fiscal or economic stimulus details, causing the US Dollar to weaken. There is no major scheduled news that will directly impact this pair during today’s trading sessions.
USDCAD – 1 Hour Chart
Price continues to retrace and be bearish. The moving averages are still bullish though, suggesting that the USDCAD could attempt a swing higher. Long opportunities may exist around the 50.0% and 61.8% Fib levels and around the previous horizontal resistance at 1.3185.
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. The President Elect’s latest speech provided no fiscal or economic stimulus details, causing the US Dollar to weaken. There is no major scheduled news that will directly impact this pair during today’s trading sessions.
USDCHF – 1 Hour Chart
As suggested in yesterday’s chart analysis, the USDCHF found support around the bearish channel support area and quickly reversed bearish around the previous horizontal resistance around 1.0010. Price action has formed a potential downwards channel. The moving averages have crossed bearish and are widening, signalling that the downtrend could continue. Selling opportunities could exist around any of the identified horizontal levels, around the dynamic resistance of the moving averages and around the bearish channel resistance area.
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. The President Elect’s latest speech provided no fiscal or economic stimulus details, causing the US Dollar to weaken. There is no major scheduled news that will directly impact this pair during today’s trading sessions.
USDJPY – 1 Hour Chart
Price is looking choppy and is ranging within a horizontal channel at 112.55-115.50. The moving averages confirm the market indecision – they are crossing frequently and providing no clear direction. Trading opportunities could exist around the range support and resistance area and if the USDJPY moves out of the horizontal channel (break-out trade).
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. The President Elect’s latest speech provided no fiscal or economic stimulus details, causing the US Dollar to weaken. There is no major scheduled news that will directly impact this pair during today’s trading sessions.
XAUUSD – 1 Hour Chart
GOLD continues to find resistance around 1218.30 and is moving within a potential horizontal channel at 1196.20-1218.30. The moving averages confirm the current indecision – they are moving sideways and crossing frequently. Trading opportunities could exist around the range support and resistance and if price moves out of the range (break-out trade). Buying opportunities could exist around the moving averages and around the trend support area.
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