Intraday Forex Analysis – 1 Hour Charts – February 24, 2017
AUDUSD – 1 Hour Chart
As suggested in yesterday’s chart analysis, the AUDUSD rallied after moving above the symmetrical triangle resistance area and reversed around the bullish channel resistance area. Price has been finding support around the previous patterns resistance. The moving averages are bullish and are widening, suggesting that the AUDUSD could move higher. Buying opportunities may exist around the dynamic support of the moving averages, around the previous consolidation resistance area and if price moves above the bullish channel resistance. The AUDUSD could stall or reverse around the bullish channel resistance area.
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 recently raised 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 that will directly impact this pair during today’s trading sessions.
EURGBP – 1 Hour Chart
Price has been bearish and has moved lower (as suggested in yesterday’s chart analysis). The moving averages are bearish and steady, signalling that the EURGBP could still move lower. Selling opportunities could exist around the bearish moving averages, around the trend resistance area and around the horizontal resistance at 0.8490. Price could stall or reverse bullish around the identified diagonal 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. There is no major scheduled news that will directly impact this pair during today’s trading sessions.
EURUSD – 1 Hour Chart
The EURUSD continues to retrace and be bullish. Price action has formed a bearish channel and price is down-trending. Shorting opportunities could exist around the 50.0% and 61.8% Fib levels and around the bearish channel resistance area.
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 recently raised 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 that will directly impact this pair during today’s trading sessions.
GBPUSD – 1 Hour Chart
As suggested in yesterday’s chart analysis, the GBPUSD moved above the horizontal resistance at 1.2510 and has rallied higher. The moving averages are bullish and steady, signalling that price could uptrend. Long opportunities may exist around the previous horizontal resistance area and around the dynamic support of the moving averages.
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 recently raised 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 that will directly impact this pair during today’s trading sessions.
NZDUSD – 1 Hour Chart
Price continues to range within a horizontal channel at 0.7135-0.7235. The NZDUSD has bounced off the horizontal channel resistance (as suggested in yesterday’s chart analysis) but price action is looking bullish. The moving averages are bullish and are widening, suggesting that price could move above the range resistance area. Buying opportunities may exist around the bullish moving averages and if price moves above the resistance area.
New Zealand’s economy continues to seem steady, though recent unemployment data was much worse than expected. The Reserve Bank of New Zealand recently 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 recently raised 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 that will directly impact this pair during today’s trading sessions.
USDCAD – 1 Hour Chart
The USDCAD is looking choppy and indecisive. The moving averages confirm this – they have been crossing frequently and are moving sideways. Price is consolidating between 1.3025-1.3200. From a technical view, there are very few areas that could provide trading opportunities.
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 recently raised interest rates to 0.75%. The US Dollar could continue to strengthen long-term, as further rate hikes are expected. A Canadian CPI figure is set to be released at 1330 UTC today.
USDCHF – 1 Hour Chart
As suggested in yesterday’s chart analysis, the USDCHF has been finding support around the 50.0% Fib level. Price is up-trending and has formed a bullish channel. The moving averages are moving sideways, signalling current market indecision. Buying opportunities could exist around the 50.0% and 61.8% Fib levels and around the bullish channel support area.
The US Federal Reserve recently raised 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 that will directly impact this pair during today’s trading sessions.
USDJPY – 1 Hour Chart
Price continues to be bearish and move within a bearish channel. The moving averages have crossed bearish and are widening, suggesting that the USDJPY may attempt a bearish move. Selling opportunities could exist around the bearish moving averages, around the previous horizontal support at 113.00, around the bearish channel resistance area and if price moves below the horizontal support at 112.55.
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 raised 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 that will directly impact this pair during today’s trading sessions.
XAUUSD – 1 Hour Chart
As suggested in yesterday’s chart analysis, GOLD moved above the consolidation resistance and has since been very bullish. The moving averages have crossed bullish and are widening, suggesting that price could uptrend. If GOLD starts retracing during today’s trading sessions, opportunities to go long could be around the previous horizontal resistance levels at 1238.75 and 1242.65 and around the bullish moving averages.
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