Intraday Forex Analysis – 1 Hour Charts – February 20, 2017


AUDUSD – 1 Hour Chart

AUDUSD - 20.02.2017

The AUDUSD is moving within a bullish channel but is looking a little indecisive. The moving averages confirm this – they have been crossing frequently and are tight. Buying opportunities could exist around the bullish channel support area and if price moves above the bullish channel resistance. The AUDUSD could stall or reverse around the bullish channel resistance area.

The Bank of Australia 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. There are concerns over how a Trump led US could negatively impact the Australian economy. The US Federal Reserve recently raised interest rates to 0.75%. 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.

EURGBP – 1 Hour Chart

EURGBP - 20.02.2017

Price has been moving sideways but price action has formed a potential bullish channel. The moving averages are bullish and steady, suggesting that the EURGBP could move higher. Long opportunities may exist around the dynamic support of the moving averages and around the bullish channel support area. Price could stall or reverse bearish around the bullish channel resistance area.

The British Prime Minister has announced that Article 50 will be triggered by the end of March 2017. Most economists did believe that sterling would continue to weaken long-term but there now exists more optimism for the British pound. British Prime Minister Theresa May has provided Brexit negotiation details and announced what deal the UK government would like as they leave the EU. This has given strength to the GBP. There is no major scheduled news today that will directly impact this pair.

EURUSD – 1 Hour Chart

EURUSD - 20.02.2017

The moving averages have crossed bullish but are now moving sideways, signalling potential market indecision. Price action has formed a higher swing high and the EURUSD is finding some support around the longer-term moving average, suggesting that price could attempt a bullish move. Buying opportunities could exist around the longer-term moving average.

The future of the Euro is very unclear (not uncertain, just indecisive). Some economists are expecting a 1.0000 parity between the Euro and US Dollar. The US Federal Reserve recently raised interest rates to 0.75%. 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.

GBPUSD – 1 Hour Chart

GBPUSD - 20.02.2017

As suggested in Friday’s chart analysis, the GBPUSD found resistance around the symmetrical triangle resistance area and has recently found support around the symmetrical triangle support area. The moving averages confirm the current market indecision – they are tight and moving sideways. Trading opportunities may exist around the consolidation support and resistance and if price moves out of the consolidation (break-out trade).

The British Prime Minister has announced that Article 50 will be triggered by the end of March 2017. Most economists did believe that sterling would continue to weaken long-term but there now exists more optimism for the British pound. British Prime Minister Theresa May has provided Brexit negotiation details and announced what deal the UK government would like as they leave the EU. This has given strength to the GBP. The US Federal Reserve recently raised interest rates to 0.75%. 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.

NZDUSD – 1 Hour Chart

NZDUSD - 20.02.2017

The NZDUSD is ranging within a horizontal channel at 0.7140-0.7235. The moving averages confirm the range – they are moving sideways and are tight. Trading opportunities could exist around the horizontal channel support and resistance and if price moves out of the range (break-out trade).

New Zealand’s economy continues to seem steady, though recent unemployment data was much worse than expected. 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 recently raised interest rates to 0.75%. 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

USDCAD - 20.02.2017

As suggested in Friday’s chart analysis, price moved above the consolidation resistance area and was bullish. The USDCAD quickly reversed bearish though and has formed a horizontal channel at 1.3025-1.3120. Trading opportunities could exist around the horizontal channel support and resistance 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 appreciation of OIL has given some strength to the Canadian Dollar, so has positive employment data. The US Federal Reserve recently raised interest rates to 0.75%. 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

USDCHF - 20.02.2017

Price has been bullish but is currently finding resistance around the previous bullish channel support area (as suggested in Friday’s chart analysis). The moving averages are bearish and are widening, suggesting that the USDCHF could move lower. Selling opportunities could exist around the dynamic resistance of the longer-term moving average and around the previous bullish channel support area.

The US Federal Reserve recently raised interest rates to 0.75%. 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.

USDJPY – 1 Hour Chart

USDJPY - 20.02.2017

The USDJPY is finding resistance around the shorter-term moving average and the previous horizontal support at 113.10. The moving averages are bearish and are widening, signalling that price could move lower and continue to downtrend. Shorting opportunities could exist around the dynamic resistance of the moving averages and around the previous horizontal level. Price action is forming a potential bearish channel.

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 continues. The US Federal Reserve recently raised interest rates to 0.75%. 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

XAUUSD - 20.02.2017

As suggested in Friday’s chart analysis, GOLD has found resistance around the horizontal resistance area. Price continues to range within a horizontal channel at 1220.00-1242.55. The moving averages confirm the current market indecision – they are crossing frequently. Trading opportunities could exist around the horizontal channel support and resistance areas and if price moves out of the channel.