Intraday Forex Analysis – 1 Hour Charts – June 01, 2017
AUDUSD – 1 Hour Chart
The AUDUSD has been bearish and has moved lower. Price action has formed a short series of lower swing highs and lower swing lows and a bearish channel, suggesting that selling momentum may continue. The moving averages are tight though, signalling market indecision. Opportunities to go short could exist around the previous horizontal support at 0.7425, around the moving averages and around the bearish channel resistance area. Price may stall or reverse around the 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 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.
US Non-Farm Employment Change data will be released at 1215 UTC today. This is followed by US Unemployment Claims at 1230 UTC, US Manufacturing PMI at 1400 UTC and US Crude Oil Inventories at 1500 UTC.
EURGBP – 1 Hour Chart
As suggested in yesterday’s chart analysis, the EURGBP has stalled around the horizontal resistance at 0.8745 and is struggling to reach the bullish channel resistance area. The moving averages are tight, signalling that buying momentum is weakening. Selling opportunities may exist around the horizontal resistance area and if price moves below the bullish channel support area. Buying opportunities could exist around the moving averages and around the channel support area. There is a chance that the EURGBP may start ranging between the horizontal levels at 0.8660 and 0.8745.
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.
A UK Manufacturing PMI figure will be announced at 0830 UTC today.
EURUSD – 1 Hour Chart
Price moved above the bearish channel resistance area and has since been bullish (as suggested in yesterday’s chart analysis). The moving averages have crossed bullish and are widening, suggesting that the EURUSD could start up-trending. Long opportunities may exist around the dynamic support of the moving averages, around the previous horizontal resistance at 1.1190 and around the previous bearish channel resistance area (as support). Price may stall or reverse around the horizontal resistance at 1.1260.
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.
US Non-Farm Employment Change data will be released at 1215 UTC today. This is followed by US Unemployment Claims at 1230 UTC, US Manufacturing PMI at 1400 UTC and US Crude Oil Inventories at 1500 UTC.
GBPUSD – 1 Hour Chart
The GBPUSD found support around the previous swing low at 1.2780 but price has become choppy and indecisive again. The moving averages confirm this – they have crossed and are moving sideways. From a technical view, there are very few areas that may provide trading opportunities. The GBPUSD could stall or reverse around the identified horizontal levels at 1.2780 and 1.2930. If price moves below the horizontal support at 1.2780, the GBPUSD may attempt a bearish move lower.
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.
A UK Manufacturing PMI figure will be announced at 0830 UTC today. US Non-Farm Employment Change data will be released at 1215 UTC. This is followed by US Unemployment Claims at 1230 UTC, US Manufacturing PMI at 1400 UTC and US Crude Oil Inventories at 1500 UTC.
NZDUSD – 1 Hour Chart
As suggested in yesterday’s chart analysis, price continues to uptrend within the bullish channel and has recently moved off the channel support and resistance areas. The moving averages are bullish and steady, signalling that the NZDUSD could continue to be bullish. Buying opportunities may exist around the dynamic support of the moving averages and around the bullish channel support area. Price may stall or reverse around the channel resistance area. If the NZDUSD moves below the channel support area, price could attempt a bearish move lower.
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.
US Non-Farm Employment Change data will be released at 1215 UTC today. This is followed by US Unemployment Claims at 1230 UTC, US Manufacturing PMI at 1400 UTC and US Crude Oil Inventories at 1500 UTC.
USDCAD – 1 Hour Chart
Price has moved above the recent range resistance and is attempting to move higher (as suggested in yesterday’s chart analysis). The moving averages are bullish and are steady, suggesting that buying momentum has increased. Buying opportunities could exist around the previous range resistance at 1.3490, around the moving averages and around the diagonal support area. The USDCAD may stall or reverse around the previous swing high at 1.3540.
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.
US Non-Farm Employment Change data will be released at 1215 UTC today. This is followed by US Unemployment Claims at 1230 UTC, US Manufacturing PMI at 1400 UTC and US Crude Oil Inventories at 1500 UTC.
USDCHF – 1 Hour Chart
The USDCHF has moved below the horizontal channel support area. The moving averages are no longer moving sideways but have crossed bearish and are widening, signalling that price may become bearish. Selling opportunities could exist around the previous horizontal channel support area at 0.9695, around the dynamic resistance of the moving averages and around any of the key Fib levels.
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.
US Non-Farm Employment Change data will be released at 1215 UTC today. This is followed by US Unemployment Claims at 1230 UTC, US Manufacturing PMI at 1400 UTC and US Crude Oil Inventories at 1500 UTC.
USDJPY – 1 Hour Chart
Price action has formed a horizontal channel at 110.50-111.15 and a bearish channel. Trading opportunities could exist around the horizontal channel support and resistance areas and if the USDJPY moves out of the channel (break-out trade). The moving averages are bearish and are steady, signalling that price may attempt a move lower. Shorting opportunities could exist around the bearish channel resistance area and around the moving averages. The USDJPY may stall or reverse around the bearish channel 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 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.
US Non-Farm Employment Change data will be released at 1215 UTC today. This is followed by US Unemployment Claims at 1230 UTC, US Manufacturing PMI at 1400 UTC and US Crude Oil Inventories at 1500 UTC.
XAUUSD – 1 Hour Chart
GOLD has moved off the bullish channel resistance area again (as suggested in yesterday’s chart analysis). Price continues to be bullish and uptrend within the bullish channel. The moving averages are tight and are about to cross bearish, suggesting that GOLD may soon attempt a move towards the channel support area and retrace some of the recent bullish move. Opportunities to go long could exist around the moving averages, around the diagonal support area and around the bullish channel support area. Price may stall or reverse around the channel resistance area.
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