Intraday Forex Analysis – 1 Hour Charts – February 17, 2017

AUDUSD – 1 Hour Chart

As suggested in yesterday’s chart analysis, price has found support around the previous horizontal resistance and the shorter-term moving average and has been slightly bullish. The moving averages are bullish and are widening, suggesting that the AUDUSD could move higher. Buying opportunities could exist around the dynamic support of the moving averages, around the bullish channel support area and if price moves above the bullish channel resistance.

The Bank of Australia recently decided to hold rates at 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. There is no major scheduled news today that will directly impact this pair.

EURGBP – 1 Hour Chart

The EURGBP moved above the consolidation resistance and has been bullish (as suggested in yesterday’s chart analysis). The moving averages are bullish and are widening, signalling that price may continue to uptrend. Long opportunities could exist around the bullish moving averages, around the previous consolidation resistance (as support) and around the trend support area.

The British Prime Minister has announced that Article 50 will be triggered by the end of March 2017. Most economists did believe that sterling would continue to weaken long-term but there now exists more optimism for the British pound. 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. UK Retail Sales data is set to be released at 0930 UTC today.

EURUSD – 1 Hour Chart

As suggested in yesterday’s chart analysis, the EURUSD has found resistance around the 50.0% Fib level and is becoming bearish. The moving averages have crossed bullish and are widening though, suggesting that price could move higher. Buying opportunities may exist around the bullish moving averages. Selling opportunities could exist around the 50.0% and 61.8% Fib levels and if the EURUSD moves below 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, as further rate hikes are expected. There is no major scheduled news today that will directly impact this pair.

GBPUSD – 1 Hour Chart

Price is finding resistance around the symmetrical triangle resistance area (as suggested in yesterday’s chart analysis). The moving averages are moving sideways and are tight, suggesting market indecision. Trading opportunities could exist around the consolidation support and resistance and if the GBPUSD moves out of the consolidation (break-out trade).

The British Prime Minister has announced that Article 50 will be triggered by the end of March 2017. Most economists did believe that sterling would continue to weaken long-term but there now exists more optimism for the British pound. 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 US Federal Reserve have increased interest rates to 0.75%. The US Dollar could continue to strengthen long-term, as further rate hikes are expected. UK Retail Sales data is set to be released at 0930 UTC.

NZDUSD – 1 Hour Chart

The NZDUSD is looking indecisive and is moving within a potential horizontal channel at 0.7140-0.7240. The moving averages confirm the current lack of trend direction – they are moving sideways. Trading opportunities could exist around the range support and resistance and if price moves out of the range (break-out trade).

New Zealand’s economy continues to seem steady, though recent unemployment data was much worse than expected. The Reserve Bank of New Zealand have kept rates at 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, as further rate hikes are expected. There is no major scheduled news today that will directly impact this pair.

USDCAD – 1 Hour Chart

As suggested in yesterday’s chart analysis, the USDCAD found support around the symmetrical triangle support area and is now testing the resistance area. Trading opportunities may exist around the consolidation support and resistance areas and if price moves out of the consolidation (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. The appreciation of OIL has given some strength to the Canadian Dollar, so has positive employment data. The US Federal Reserve have increased interest rates to 0.75%. The US Dollar could continue to strengthen long-term, as further rate hikes are expected. There is no major scheduled news today that will directly impact this pair.

USDCHF – 1 Hour Chart

Price moved below the bullish channel support and has since been bearish (as suggested in yesterday’s chart analysis). The moving averages have crossed bearish and are widening, suggesting that the USDCHF could start down-trending. Shorting opportunities could exist around the dynamic resistance of the moving averages and around the previous bullish channel support area (as resistance).

The US Federal Reserve increased interest rates to 0.75%. The US Dollar could continue to strengthen long-term, as further rate hikes are expected. The Swing Franc may see added strength if political uncertainty in the US continues. There is no major scheduled news today that will directly impact this pair.

USDJPY – 1 Hour Chart

From a technical view, there are very few areas that could provide trading opportunities. Price is looking choppy and indecisive. A long opportunity could exist around the horizontal support at 113.10. Shorting opportunities could exist around the moving averages and if the USDJPY moves below the horizontal support level.

The Bank of Japan have kept interest rates at a low of -0.10%. The Yen may see added strength if political uncertainty in the US continues. The US Federal Reserve recently increased interest rates to 0.75%. The US Dollar could continue to strengthen long-term, as further rate hikes are expected. There is no major scheduled news today that will directly impact this pair.

XAUUSD – 1 Hour Chart

As suggested in yesterday’s chart analysis, GOLD moved above the horizontal channel but has reversed bearish around the horizontal resistance at 1242.50. Price is now ranging within a wider horizontal channel at 1220.00-1242.50. The moving averages confirm the current market indecision – they are crossing frequently and moving sideways. Trading opportunities may exist around the channel support and resistance areas and if GOLD moves out of the channel (break-out trade).

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