Inter-day Forex Analysis – Daily Charts – April 28, 2017

EURGBP – Daily Chart

As suggested in our last inter-day chart analysis, price moved below the symmetrical triangle support area and has attempted a bearish move lower. The EURGBP has reversed around the horizontal channel support area though and price continues to range within the horizontal channel (0.8350-0.8830). Trading opportunities could exist around the horizontal channel support and resistance areas and if price moves out of the channel (break-out trade). Selling opportunities could exist the support and resistance of the previous symmetrical triangle pattern.

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.

EURUSD – Daily Chart

The EURUSD has reversed around the bullish channel support area and continues to be bullish (as suggested in our last inter-day chart analysis). Price is now hovering around the bullish channel resistance area. The moving averages are bullish and are starting to widen, suggesting that the uptrend may continue. Buying opportunities could exist around the previous horizontal resistance at 1.0860, around the dynamic support of the moving averages and if the EURUSD moves above the bullish channel resistance area. Price may stall or reverse around the bullish channel resistance area.

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.

GBPUSD – Daily Chart

As suggested in our last inter-day chart analysis, the GBPUSD has moved above the symmetrical triangle resistance area and has since been bullish. The moving averages are bullish and are widening, signalling that the uptrend could continue. Opportunities to go long may exist around the previous range resistance at 1.2735, around the support and resistance of the previous symmetrical triangle and around the dynamic support of the bullish moving averages. The GBPUSD could stall or reverse around the horizontal resistance at 1.3445.

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.

USDCAD – Daily Chart

Price has moved above the recent horizontal channel resistance area. The moving averages have crossed bullish and are widening and price action has formed a bullish channel, all suggesting that the USDCAD could move higher. Buying opportunities could exist around the previous range resistance at 1.3570, around the dynamic support of the moving averages, around the identified trend support area and around the bullish channel support area. Price may stall or reverse around the bullish channel 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 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.

XAUUSD – Daily Chart

GOLD has formed a bullish channel and the moving averages are bullish and steady, all signalling that price may move higher. Overall though, GOLD is looking choppy and is not trending in either direction. Long opportunities could exist around the moving averages and around the bullish channel support area. Shorting opportunities could exist around the bullish channel resistance area and around the horizontal level at 1303.60.

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