Intraday Forex Analysis – 1 Hour Charts – April 24, 2017

AUDUSD – 1 Hour Chart

As suggested in Friday’s chart analysis, the AUDUSD has been bullish and is making an attempt towards the bullish channel resistance area. Price continues to look a little choppy and move within a horizontal channel at 0.7475-0.7610 and also the bullish channel. The moving averages confirm the current indecision – they have been crossing frequently. Trading opportunities may exist around the horizontal channel support and resistance areas and if price moves out of the channel (break-out trade). Buying opportunities could exist around the moving averages.

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. The US Federal Reserve recently raised interest rates to 1.00%. The US Dollar may 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 did find resistance around the trend resistance area (as suggested in Friday’s chart analysis) but the EURGBP has gapped very bullish. The moving averages have crossed bullish and are widening, signalling that price may attempt another bullish move. If the EURGBP pulls-back during today’s trading sessions, long opportunities could exist around any of the key Fib levels, around the previous swing high at 0.8400 and around the moving averages. Price may stall or reverse around the horizontal resistance at 0.8505.

Article 50 has been triggered – the UK has started negotiations on leaving the European Union. Most economists did believe that sterling would continue to weaken long-term but there now exists more optimism for the British pound. The British Prime Minister has announced an unexpected general election to be held on 8th June. The purpose of this election is to form a majority government in order to strengthen government unity. The ECB have announced that the economic future of the Eurozone is looking more stable. There are some concerns though that the UK leaving the EU may weaken the European economy and weaken the Euro. A French Election is running for 2 weeks, the final result will be announced on 7th May 2017. This election may cause a lot of volatility on Euro pairs due to market uncertainty. The Euro has strengthened as recent polls have suggested that Macron – who is neither strongly left or right –  will win the election.

German Ifo Business Climate data is set to be released at 0900 UTC today.

EURUSD – 1 Hour Chart

As suggested in Friday’s chart analysis, the EURUSD formed a head and shoulder pattern and moved slightly lower. Price has since gapped very bullish though. The moving averages are bullish and are widening, suggesting that the EURUSD may attempt another bullish move. Opportunities to go long could exist around any of the key Fib levels, around the previous bullish channel resistance area and around the dynamic support of the moving averages.

The US Federal Reserve recently raised interest rates to 1.00%. The US Dollar may 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. There are some concerns though that the UK leaving the EU may weaken the European economy and weaken the Euro. A French Election is running for 2 weeks, the final result will be announced on 7th May 2017. This election may cause a lot of volatility on Euro pairs due to market uncertainty. The Euro has strengthened as recent polls have suggested that Macron – who is neither strongly left or right –  will win the election.

German Ifo Business Climate data is set to be released at 0900 UTC today.

GBPUSD – 1 Hour Chart

Price has moved-off the horizontal channel support and resistance areas and continues to range (as suggested in Friday’s chart analysis). The moving averages confirm the current indecision – they are tightening and starting to move sideways. Trading opportunities could exist around the range support and resistance areas at 1.2770 and 1.2850 and if the GBPUSD moves out of the range (break-out trade).

Article 50 has been triggered – the UK has started negotiations on leaving the European Union. Most economists did believe that sterling would continue to weaken long-term but there now exists more optimism for the British pound. The British Prime Minister has announced an unexpected general election to be held on 8th June. The purpose of this election is to form a majority government in order to strengthen government unity. The US Federal Reserve recently raised interest rates to 1.00%. The US Dollar may 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

As suggested in Friday’s chart analysis, the NZDUSD has reversed around the horizontal channel resistance area and continues to move within the channel at 0.6985-0.7050. The moving averages are tight and are moving sideways – confirming the current market indecision. Trading opportunities may exist around the horizontal channel support and resistance areas and if price moves out of the channel (break-out trade).

New Zealand’s economy continues to seem steady. 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 1.00%. 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 has formed a bullish swing higher but is now retracing. The moving averages are bullish but are beginning to tighten and move sideways, signalling that price may retrace further. Buying opportunities could exist around the horizontal support at 1.3455 and around the longer-term moving average. It is possible that the USDCAD may start ranging between the horizontal levels at 1.3455 and 1.3515.

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 US Federal Reserve recently raised interest rates to 1.00%. 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.

USDCHF – 1 Hour Chart

As suggested in Friday’s chart analysis, price reversed bearish around the trend resistance area and the horizontal resistance at 0.9995 and has since moved lower. The moving averages are bearish and are steady, suggesting that the USDCHF may continue to downtrend. Selling opportunities could exist around the dynamic resistance of the moving averages, around the trend resistance area and around the horizontal resistance at 0.9995. A bearish move may stall or reverse around the bearish channel support area.

The US Federal Reserve recently raised interest rates to 1.00%. The US Dollar could continue to strengthen long-term, as further rate hikes are expected. The Swiss National Bank recently decided to keep rates at -0.75%. The CHF may act as a safe-haven currency during the French election and as the Italian and other European elections near.

There is no major scheduled news that will directly impact this pair during today’s trading sessions.

USDJPY – 1 Hour Chart

Price found support around the longer-term moving average and around the trend support area and has since moved higher (as suggested in Friday’s chart analysis). The moving averages are bullish and are widening, suggesting that the USDJPY could continue to uptrend. If price pulls-back, opportunities to go long could exist around the previous horizontal resistance at 109.40, around the bullish moving averages and around the trend support area.

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 returns. The Yen may act as a safe-haven currency during the French election and as the Italian and other European elections near. The US Federal Reserve recently raised interest rates to 1.00%. 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 Friday’s chart analysis, the USDJPY has reversed bearish around the trend resistance area (previous bearish channel resistance) and continues to downtrend. The moving averages are bearish and are steady, suggesting that the selling momentum may continue. Shorting opportunities could exist around the previous horizontal support at 1278.00, around the bearish moving averages and around the trend resistance area.

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