Intraday Forex Analysis – 1 Hour Charts – June 12, 2017
AUDUSD – 1 Hour Chart
As suggested in Friday’s chart analysis, price has been finding support around the 23.6% Fib level and around the previous horizontal resistance at 0.7515. The moving averages are tight and are moving sideways, suggesting that the AUDUSD may start ranging, possibly between the horizontal support at 0.7515 and the recent swing high at 0.7565. Trading opportunities could exist around the range support and resistance areas and if price moves out of the range (break-out trade). Buying opportunities may exist around any of the key Fib levels.
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 this month (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 pair.
EURGBP – 1 Hour Chart
The EURGBP has reversed bullish around the previous horizontal resistance areas at 0.8750 and 0.8765 (as suggested in Friday’s chart analysis). The moving averages have crossed bullish and are widening, signalling that price may attempt a bullish move higher. Opportunities to go long could exist around the previous horizontal resistance areas and around the moving averages. The EURGBP may stall or reverse around the previous swing high at 0.8835.
Article 50 has been triggered – the UK has started preparing negotiations for leaving the European Union. The British government has lost some parliamentary seats and has had to form a minority government to stay in power. There is concern that this decision may create more political and economic uncertainty for the UK. 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 is no major scheduled news today that will directly impact this pair.
EURUSD – 1 Hour Chart
Price is down-trending within a bearish channel but the EURUSD is also looking choppy and slightly indecisive. The moving averages are bearish and are widening, suggesting that the bearish momentum could continue. Selling opportunities may exist the dynamic resistance of the moving averages and around the bearish channel resistance area. Price may stall or reverse around the channel support area and around the horizontal support at 1.1165.
The US Federal Reserve have kept rates at 1.00%. The next rate hike is expected this month (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 is no major scheduled news today that will directly impact this pair.
GBPUSD – 1 Hour Chart
The GBPUSD has been retracing some of the recent bearish swing and is currently bullish. Price has been finding resistance around the 38.2% Fib level . The moving averages are bearish and are widening, suggesting that the GBPUSD may attempt a swing lower. Opportunities to go short could exist around any of the key Fib levels, around the dynamic resistance of the moving averages and around the previous horizontal support levels at 1.2780, 1.2840 and 1.2880. Price may stall or reverse around the recent swing low at 1.2660.
Article 50 has been triggered – the UK has started preparing negotiations for leaving the European Union. The British government has lost some parliamentary seats and has had to form a minority government to stay in power. There is concern that this decision may create more political and economic uncertainty for the UK. 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 this month (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 pair.
NZDUSD – 1 Hour Chart
As suggested in Friday’s chart analysis, the NZDUSD has been moving sideways and is currently indecisive. The moving averages confirm this – they are tight and are also moving sideways. Price action has formed a horizontal channel at 0.7190-0.7220. Trading opportunities may exist around the horizontal channel support and resistance areas and if price moves out of the channel (break-out trade). The NZDUSD has also formed a bearish channel. Shorting opportunities could exist around the bearish channel resistance area. If price breaks to the downside, the NZDUSD may stall or reverse around the horizontal levels at 0.7145 and 0.7115.
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. 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 this month (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 pair.
USDCAD – 1 Hour Chart
Price continues to range between the horizontal levels at 1.3425 and 1.3540. The USDCAD has been reversing around the range support and resistance areas (as suggested in Friday’s chart analysis). The moving averages have been crossing frequently and have been providing no clear market direction – confirming the current market decision. Trading opportunities may exist around the range support and resistance areas and if price moves out of the range (break-out trade).
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 recent sell-off in the OIL market has caused some Canadian Dollar weakness. The US Federal Reserve have kept rates at 1.00%. The next rate hike is expected this month (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 pair.
USDCHF – 1 Hour Chart
The USDCHF has been bullish. Price has recently reversed some of the recent bullish swing and has been retracing. The moving averages are bullish and are widening, signalling that the USDCHF may attempt a move higher. Long opportunities could exist around the dynamic support of the moving averages, around the trend support area and around the previous swing high at 0.9670. Price may stall or reverse around the previous swing high at 0.9730.
The US Federal Reserve have kept rates at 1.00%. The next rate hike is expected this month (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 pair.
USDJPY – 1 Hour Chart
As suggested in Friday’s chart analysis, price has been moving off the bullish channel support and resistance areas and continues to uptrend within the channel. The moving averages are bullish and are widening, signalling that that the bullish momentum could continue. Buying opportunities may exist around the channel support area and around the moving averages. The USDJPY may stall or reverse around the channel resistance area and around the horizontal resistance at 110.75.
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 this month (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 pair.
XAUUSD – 1 Hour Chart
GOLD found support around the previous horizontal resistance at 1271.90 (as suggested in Friday’s chart analysis) but price has since moved lower. GOLD is looking indecisive. From a technical view, there are very few areas that could provide clear trading opportunities. The moving averages are bearish and are widening, suggesting that price may move lower. Trading opportunities could exist around the moving averages and around the horizontal levels at 1260.00 and 1294.25.
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