Intraday Forex Analysis – 1 Hour Charts – May 29, 2017
AUDUSD – 1 Hour Chart
Price action has formed a horizontal channel at 0.7425-0.7460 and the AUDUSD is moving within the channel. Price recent moved below a bullish channel support area and the moving averages have crossed bearish and are widening, all suggesting that the AUDUSD may move lower. 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 around the bearish moving averages.
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 US Federal Reserve have kept rates at 1.00%. The next rate hike is expected in June 2017 though US political uncertainties continue. These events may cause weakness in the US Dollar, especially if they intensify.
There is no major scheduled news today that will directly impact this currency pair.
EURGBP – 1 Hour Chart
As suggested in Friday’s chart analysis, price has continued to be bullish and has started to retrace around the bullish channel resistance area. The moving averages are bullish and are steady, signalling that the EURGBP could continue to uptrend. Buying opportunities may exist around the moving averages, around the previous horizontal resistance at 0.8665 and around the bullish channel support area.
Article 50 has been triggered – the UK has started negotiations on leaving the European Union. The British Prime Minister has announced a 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. The Bank of England recently kept rates at 0.25% and announced that wage growth is stagnant while inflation is increasing, causing some concerns for the UK 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 will be a European Central Bank (ECB) Speech at 1300 UTC today.
EURUSD – 1 Hour Chart
The EURUSD has been finding support around the horizontal level at 1.1160 and continues to move within the horizontal channel at 1.1160-1.1260 (as suggested in Friday’s chart analysis). The moving averages confirm the current indecision – they are tight and have been crossing frequently. Trading opportunities could exist around the horizontal channel support and resistance areas and if price moves out of the channel (break-out trade). Shorting opportunities may exist around the identified diagonal resistance area.
The US Federal Reserve have kept rates at 1.00%. The next rate hike is expected in June 2017 though US political uncertainties continue. These events may cause weakness in the US Dollar, especially if they intensify. 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 will be a European Central Bank (ECB) Speech at 1300 UTC today.
GBPUSD – 1 Hour Chart
As suggested in Friday’s chart analysis, the GBPUSD has moved even lower and continues to be bearish. The moving averages are bearish and are widening, suggesting that price could start down-trending. Shorting opportunities may exist around any of the previous horizontal support levels at 1.2850, 1.2870 and 1.2930, around the bearish moving averages and around the support and resistance of the previous bearish channel.
Article 50 has been triggered – the UK has started negotiations on leaving the European Union. The British Prime Minister has announced a 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. The Bank of England recently kept rates at 0.25% and announced that wage growth is stagnant while inflation is increasing, causing some concerns for the UK economy. The US Federal Reserve have kept rates at 1.00%. The next rate hike is expected in June 2017 though US political uncertainties continue. These events may cause weakness in the US Dollar, especially if they intensify.
There is no major scheduled news today that will directly impact this currency pair.
NZDUSD – 1 Hour Chart
Price is moving within a bullish channel and is up-trending. The moving averages are bullish and are steady, signalling that the NZDUSD may continue to be bullish. Opportunities to go long could exist around the moving averages and around the bullish channel support area. Price may stall or reverse around the bullish channel resistance area and around the horizontal resistance at 0.7075.
The Reserve Bank of New Zealand recently kept rates at 1.75% and announced that there will not be a rate hike in the foreseeable future. This has caused some weakness. 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 though US political uncertainties continue. These events may cause weakness in the US Dollar, especially if they intensify.
There is no major scheduled news today that will directly impact this currency pair.
USDCAD – 1 Hour Chart
As suggested in Friday’s chart analysis, price has been finding support around the shorter-term moving average and is currently attempting to move higher. The moving averages are tightening and are moving sideways, suggesting that the USDCAD could start ranging or may attempt a move higher. Trading opportunities may exist around the identified support and resistance areas.
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 have kept rates at 1.00%. The next rate hike is expected in June 2017 though US political uncertainties continue. These events may cause weakness in the US Dollar, especially if they intensify.
There is no major scheduled news today that will directly impact this currency pair.
USDCHF – 1 Hour Chart
The USDCHF continues to range between the horizontal levels at 0.9700 and 0.9770 and has been moving off the range support and resistance areas (as suggested in Friday’s chart analysis). The moving averages are tight and are moving sideways – confirming the market indecision. Trading opportunities could exist around the range support and resistance areas and if price moves out of the range (break-out trade). If the USDCHF breaks to the upside, price may stall or reverse around the horizontal resistance at 0.9810.
The US Federal Reserve have kept rates at 1.00%. The next rate hike is expected in June 2017 though US political uncertainties continue. These events may cause weakness in the US Dollar, especially if they intensify. The Swiss National Bank recently decided to keep rates at -0.75%. The CHF could strengthen if political uncertainty in the US or Europe intensifies.
There is no major scheduled news today that will directly impact this currency pair.
USDJPY – 1 Hour Chart
As suggested in Friday’s chart analysis, the USDJPY moved below the consolidation support area and then moved much lower. As also suggested, price has found support around the horizontal level at 110.90. The USDJPY is ranging within a horizontal channel at 110.90-112.05. Trading opportunities may exist around the horizontal channel support and resistance areas and if price moves out of the channel (break-out trade). Shorting opportunities could exist around the diagonal resistance area. If the USDJPY breaks to the downside, price may stall or reverse around the horizontal support at 110.30.
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 intensifies. The US Federal Reserve have kept rates at 1.00%. The next rate hike is expected in June 2017 though US political uncertainties continue. These events may cause weakness in the US Dollar, especially if they intensify.
There is no major scheduled news today that will directly impact this currency pair.
XAUUSD – 1 Hour Chart
GOLD has moved above the consolidation resistance area and has since been bullish (as suggested in Friday’s chart analysis). The moving averages are bullish and are widening, signalling that price may attempt a move higher. Price action has formed a bullish channel. Buying opportunities could exist around the previous range resistance at 1263.85, around the dynamic support of the moving averages and around the bullish channel support area. GOLD may stall or reverse around the channel resistance area.
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