Intraday Forex Analysis – 1 Hour Charts – March 10, 2017

AUDUSD – 1 Hour Chart

The AUDUSD has started retracing and is currently bullish. Price is clearly down-trending. The moving averages are bearish and are widening, suggesting that the AUDUSD may attempt a swing lower. Selling opportunities could exist around the dynamic resistance of the moving averages, around any of the key Fib levels, around the previous swing low at 0.7550 and around the trend 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. US Averages Earnings, Unemployment and Non Farm Payrolls data is set to be released at 1330 UTC today. These events are likely to cause a lot of market volatility.

EURGBP – 1 Hour Chart

As suggested in yesterday’s chart analysis, price moved above the horizontal channel resistance and has since continued it’s bullish run. The moving averages are bullish and are widening, signalling that the uptrend may continue. The EURGBP is looking over-extended though and could be due a bearish retracement. Buying opportunities could exist around the bullish moving averages and around the identified horizontal levels at 0.8690 and 0.8655.

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. The ECB have announced that the economic future of the Eurozone is looking more stable. This has given strength to the Euro. A UK Manufacturing Production figure will be announced at 0930 UTC today.

EURUSD – 1 Hour Chart

Price continues to be indecisive and move within a horizontal channel at 1.0500-1.0625. The moving averages confirm the market indecision – they are crossing frequently and moving sideways. Trading opportunities could exist around the horizontal channel support and resistance areas and if price moves out of the channel (break-out trade).

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. The ECB have announced that the economic future of the Eurozone is looking more stable. This has given strength to the Euro. US Averages Earnings, Unemployment and Non Farm Payrolls data is set to be released at 1330 UTC today. These events are likely to cause a lot of market volatility.

GBPUSD – 1 Hour Chart

The GBPUSD is ranging within a tight horizontal channel at 1.2145-1.2190. Trading opportunities could exist around the range support and resistance areas and if price moves out of the range (break-out trade). If the GBPUSD breaks to the upside, a bullish move may stall or reverse around the horizontal resistance levels at 1.2225 and 1.2300. The moving averages are bearish and are widening, signalling that the GBPUSD could move lower.

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%. A UK Manufacturing Production figure will be released at 0930 UTC today. US Averages Earnings, Unemployment and Non Farm Payrolls data is set to be released at 1330 UTC today. These events are likely to cause a lot of market volatility.

NZDUSD – 1 Hour Chart

Price is moving within a tight horizontal channel at 0.6890-0.6915. Trading opportunities could exist around the horizontal channel support and resistance areas and if the NZDUSD moves out of the channel (break-out trade). The moving averages are bearish and are widening, suggesting that price may move lower.

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. US Averages Earnings, Unemployment and Non Farm Payrolls data is set to be released at 1330 UTC today. These events are likely to cause a lot of market volatility.

USDCAD – 1 Hour Chart

The USDCAD is currently testing the trend support area. Price has been very bullish and is clearly up-trending. The moving averages are bullish and are widening, suggesting that the uptrend could continue. Opportunities to go long may exist around the trend support area, around the dynamic support of the moving averages and around the identified horizontal levels at 1.3375 and 1.3425. If price is bullish during today’s trading sessions, the USDCAD could stall or reverse around the identified diagonal resistance area.

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 recent depreciation of OIL has given some weakness to the Canadian 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. US Averages Earnings, Unemployment and Non Farm Payrolls data is set to be released at 1330 UTC today. These events are likely to cause a lot of market volatility.

USDCHF – 1 Hour Chart

Price action has formed a symmetrical triangle consolidation pattern. The USDCHF is still indecisive and looking choppy. The moving averages confirm this – they are moving sideways and have been crossing frequently. Trading opportunities could exist around the triangle support and resistance areas and if price moves out of the consolidation (break-out trade).

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. US Averages Earnings, Unemployment and Non Farm Payrolls data is set to be released at 1330 UTC today. These events are likely to cause a lot of market volatility.

USDJPY – 1 Hour Chart

As suggested in yesterday’s chart analysis, the USDJPY moved above the horizontal channel resistance area and has since been bullish. The moving averages are bullish and are widening, signalling that price may move higher. Buying opportunities could exist around the dynamic support of the moving averages and around the previous horizontal channel resistance at 114.70.

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. US Averages Earnings, Unemployment and Non Farm Payrolls data is set to be released at 1330 UTC today. These events are likely to cause a lot of market volatility.

XAUUSD – 1 Hour Chart

GOLD has continued to downtrend within the bearish channel. Price is now looking over-extended and could be due a bullish retracement. If GOLD does start retracing, selling opportunities could exist around the bearish channel resistance area and around the bearish moving averages. The moving averages are bearish and are widening, suggesting that price could continue to move lower.

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