TriumphFX Intraday Forex Analysis – 1 Hour Charts – October 23, 2017
AUDUSD – 1 Hour Chart
As suggested in Friday’s chart analysis, the AUDUSD closed below the triangular consolidation support area and has since moved lower. Price continues to be indecisive. The moving averages confirm the market indecision – they have been crossing frequently and are currently moving sideways. Trading opportunities may exist around the identified horizontal levels at 0.7735, 0.7750, 0.7770 and 0.7890 and around the support and resistance areas of the previous triangular consolidation 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. Recent Monetary Policy Minutes have detailed that the Australian economy is improving. The US Federal Reserve have kept rates at 1.25% but expect to hike rates by the end of the calendar year. This is giving strength to the US Dollar. If political uncertainties intensify in the US or if tensions between the US and North Korea escalate, the US Dollar could weaken.
There is no major scheduled news today that will directly impact this currency pair.
EURGBP – 1 Hour Chart
The EURGBP has reversed around the range resistance (as suggested in Friday’s chart analysis). Price continues to be indecisive and range between the horizontal support at 0.8855 and the recent highs at 0.9025. Trading opportunities could exist around the range support and resistance areas and if the EURGBP moves out of the range (break-out trade). The moving averages confirm the current indecision – they are moving sideways and have been providing no clear trend direction.
The UK has started negotiations for leaving the European Union. Brexit and political uncertain in the UK are causing weakness in sterling. Recent economic indicators for the UK have been positive. The Bank of England have an increased favour for increasing interest rates – creating more optimism and strength for the GBP. The ECB have announced that the economic future of the Euro-zone is looking more stable and that deflation and economic slow-down is low-risk. This has caused added strength for the Euro. Recent comments by the ECB have been fairly dovish though.
There is no major scheduled news today that will directly impact this currency pair.
EURUSD – 1 Hour Chart
Price continues to be choppy and indecisive. The moving averages have been crossing frequently and are providing no clear market direction – confirming the market indecision. From a technical analysis perspective, there are very few areas that could provide trading opportunities. The EURUSD could reverse around the horizontal levels at 1.1685, 1.1740, 1.1850 and 1.1880.
The US Federal Reserve have kept rates at 1.25% but expect to hike rates by the end of the calendar year. This is giving strength to the US Dollar. If political uncertainties intensify in the US or if tensions between the US and North Korea escalate, the US Dollar could weaken. The ECB have announced that the economic future of the Euro-zone is looking more stable and that deflation and economic slow-down is low-risk. This has caused added strength for the Euro. Recent comments by the ECB have been fairly dovish though.
There is no major scheduled news today that will directly impact this currency pair.
GBPUSD – 1 Hour Chart
The GBPUSD failed to push lower and has moved above the recent bearish channel. Price is looking a little choppy and indecisive. The moving averages confirm the current indecision – they are tightening and are moving sideways. Trading opportunities could exist around the horizontal levels at 1.3030, 1.3100 and 1.3320 and around the previous bearish channel resistance area (as support).
The UK has started negotiations for leaving the European Union. Brexit and political uncertain in the UK are causing weakness in sterling. Recent economic indicators for the UK have been positive. The Bank of England have an increased favour for increasing interest rates – creating more optimism and strength for the GBP. The US Federal Reserve have kept rates at 1.25% but expect to hike rates by the end of the calendar year. This is giving strength to the US Dollar. If political uncertainties intensify in the US or if tensions between the US and North Korea escalate, the US Dollar could weaken.
There is no major scheduled news today that will directly impact this currency pair.
NZDUSD – 1 Hour Chart
Price has been bullish and is retracing some of the recent bearish swing. The moving averages are bearish and are widening, signalling that the NZDUSD could start down-trending. Selling opportunities may exist around any of the key Fib levels, around the dynamic resistance of the moving averages and around the previous horizontal support levels at 0.7055 and 0.7120. A move to the downside could stall or reverse around the recent low at 0.6940.
The Reserve Bank of New Zealand recently kept rates at 1.75% and announced that there will unlikely 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 1.25% but expect to hike rates by the end of the calendar year. This is giving strength to the US Dollar. If political uncertainties intensify in the US or if tensions between the US and North Korea escalate, the US Dollar could weaken.
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 closed above the symmetrical triangle resistance area and has since been bullish. The moving averages have crossed bullish and are widening, suggesting that the USDCAD may start up-trending. Buying opportunities could exist around the previous horizontal resistance levels at 1.2590 and 1.2570, around the previous symmetrical triangle resistance are and around the bullish moving averages.
The Bank of Canada have unexpectedly raised rates to 1.00%. This has caused the Canadian Dollar to strengthen. The US Federal Reserve have kept rates at 1.25% but expect to hike rates by the end of the calendar year. This is giving strength to the US Dollar. If political uncertainties intensify in the US or if tensions between the US and North Korea escalate, the US Dollar could weaken.
There is no major scheduled news today that will directly impact this currency pair.
USDCHF – 1 Hour Chart
The USDCHF moved above the horizontal channel resistance area and has since been bullish (as suggested in Friday’s chart analysis). Price is above the recent consolidation area and the moving averages are bullish, all signalling that the USDCHF could start up-trending. Opportunities to go long may exist around the previous horizontal channel resistance area at 0.9825/30, around any of the key Fib levels and around the dynamic support of the moving averages.
The US Federal Reserve have kept rates at 1.25% but expect to hike rates by the end of the calendar year. This is giving strength to the US Dollar. If political uncertainties intensify in the US or if tensions between the US and North Korea escalate, the US Dollar could weaken. The Swiss National Bank recently decided to keep rates at -0.75%. The CHF is a safe-haven currency, which means it could strengthen if political uncertainty in the US or Europe intensify or if the possibility of war between the US and North Korea starts to solidify.
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 found resistance around the range resistance area. As also suggested, price eventually closed above the range resistance area and has since been bullish. The moving averages are bullish, signalling that the USDJPY may start up-trending. Long opportunities could exist around the previous resistance levels at 113.40 and 113.10, around the dynamic support of the moving averages and around the trend support area.
The Bank of Japan have kept interest rates at a low of -0.10%. The Yen is a safe-haven currency, which means it could strengthen if political uncertainty in the US or Europe intensify or if the possibility of war between the US and North Korea starts to solidify, though war between these 2 countries may have a negative impact on the JPY due to Japan’s geographical location and history with North Korea. The US Federal Reserve have kept rates at 1.25% but expect to hike rates by the end of the calendar year. This is giving strength to the US Dollar. If political uncertainties intensify in the US or if tensions between the US and North Korea escalate, the US Dollar could weaken.
There is no major scheduled news today that will directly impact this currency pair.
XAUUSD – 1 Hour Chart
GOLD continues to be indecisive. From a technical view, there are very few areas that may provide trading opportunities. Price could reverse around the horizontal levels at 1260.95, 1277.50, 1291.00 and 1305.95 and around the moving averages.
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