Intraday Forex Analysis – 1 Hour Charts – May 09, 2017
AUDUSD – 1 Hour Chart
As suggested in yesterday’s chart analysis, price moved below the horizontal channel support at 0.7375 and is now forming a bearish move lower. The AUDUSD is down-trending within a bearish channel and the moving averages are bearish, all suggesting that price may move lower. Selling opportunities could exist around the bearish channel resistance area, around the previous support at 0.7375 and around the moving averages. Price may stall or reverse around the bearish channel support area.
The Reserve Bank of Australia (RBA) 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 but there is no major economic indicator that suggests that the RBA will raise rates any time soon. The recent sell-off in the commodity markets has weakened the AUD and other commodity currencies. The US Federal Reserve have kept rates at 1.00%. The next rate hike is expected in June 2017. The US Dollar may continue to strengthen long-term, as further rate hikes are expected.
There is an Australian Annual Budget Release at 2230 UTC today.
EURGBP – 1 Hour Chart
The EURGBP has moved below the bullish channel support area and continues to range between the horizontal levels at 0.8410 and 0.8530. The moving averages confirm the current market indecision – they have been crossing frequently and have been moving sideways. Trading opportunities could exist around the range support and resistance areas and if price moves out of the range (break-out trade). Shorting opportunities could exist around the moving averages and around the previous bullish channel support area (as resistance).
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. There are some concerns that the UK leaving the EU is starting to have a negative impact on the British economy. 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.
There is no major scheduled news today that will directly impact this pair.
EURUSD – 1 Hour Chart
Price has been bearish and has been retracing some of the recent bullish move. The EURUSD has formed a bullish channel but price has closed strongly bearish against the bullish channel support area and the bullish moving averages are tightening, all signalling that the EURUSD may move below the channel support and continue to be bearish. Opportunities to go long could exist around the bullish channel support area. Opportunities to go short could exist if price moves below the channel support area. If the channel support holds, the EURUSD may stall or reverse around the bullish channel resistance area.
The US Federal Reserve have kept rates at 1.00%. The next rate hike is expected in June 2017. 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.
There is no major scheduled news today that will directly impact this pair.
GBPUSD – 1 Hour Chart
The GBPUSD is looking indecisive. The moving averages are moving sideways – confirming the current indecision. From a technical view, there are very few areas that could provide trading opportunities. Price may reverse around the horizontal levels at 1.2850 and 1.2985. If the GBPUSD moves above the horizontal resistance and recent swing high at 1.2985, price may attempt a bullish move.
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. Recent economic indicators for the UK are suggesting an unexpected slow-down. There are some concerns that the UK leaving the EU is starting to have a negative impact on the British economy. The US Federal Reserve have kept rates at 1.00%. The next rate hike is expected in June 2017. The US Dollar may continue to strengthen long-term, as further rate hikes are expected.
There is no major scheduled news today that will directly impact this pair.
NZDUSD – 1 Hour Chart
As suggested in yesterday’s chart analysis, the NZDUSD reversed bearish around the diagonal resistance area and continues to move within the tightening consolidation pattern. The moving averages confirm the market indecision – they have been crossing frequently and are moving sideways. Trading opportunities may exist around the consolidation support and resistance areas and if price moves out of the consolidation (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 have kept rates at 1.00%. The next rate hike is expected in June 2017. 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, price was rejected around the moving averages and has seen been steadily bearish. The USDCAD continues to move within the horizontal channel at 1.3640-1.3790. Trading opportunities may exist around the horizontal channel support and resistance areas and if price moves out of the channel (break-out trade). The moving averages are bearish and are widening, suggesting that the USDCAD may break to the downside. Selling opportunities could exist around the moving averages.
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 strong sell-off of OIL is causing great weakness in the CAD and other commodity currency pairs. The US Federal Reserve have kept rates at 1.00%. The next rate hike is expected in June 2017. 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 was very bullish during yesterday’s trading sessions. The USDCHF has moved above the recent bearish channel and the moving averages have crossed bullish, all suggesting that price may start to uptrend. Long opportunities could exist around the previous bullish channel resistance area and around the moving averages.
The US Federal Reserve have kept rates at 1.00%. The next rate hike is expected in June 2017. 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 could strengthen if political uncertainty in the US or Europe returns.
There is no major scheduled news today that will directly impact this pair.
USDJPY – 1 Hour Chart
As suggested in yesterday’s chart analysis, the USDJPY moved above the range resistance area and has continued to uptrend within the bullish channel. The moving averages are bullish and are steady, suggesting that the bullish momentum could continue. Buying opportunities may exist around the bullish channel support area, around the previous horizontal resistance at 112.95 and around the dynamic support of the moving averages.
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 or Europe returns. The US Federal Reserve have kept rates at 1.00%. The next rate hike is expected in June 2017. 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
GOLD continues to range between the horizontal levels at 1225.10 and 1234.80 and also move within the bearish channel. Trading opportunities could exist around the range support and resistance areas and if price moves out of the range (break-out trade). Shorting opportunities may exist around the dynamic resistance of the moving averages and around the bearish channel resistance area. If GOLD breaks to the downside, price may stall or reverse around the bearish channel support area.
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