TriumphFX Intraday Forex Analysis – 1 Hour Charts – October 24, 2017
AUDUSD – 1 Hour Chart
Price continues to be indecisive. The moving averages confirm the market indecision – they have been crossing frequently and have been providing no clear trend direction. Price action has formed a horizontal channel at 0.7800-0.7830. Trading opportunities may exist around the support and resistance areas of the horizontal channel and if the AUDUSD moves out of the horizontal channel (break-out trade). If price breaks to the downside, the AUDUSD could be rejected or reverse around the horizontal support levels at 0.7770, 0.7750 and 0.7735. If price breaks to the upside, the AUDUSD may be rejected or reverse around the support and resistance areas of the previous symmetrical triangle pattern and around the horizontal resistance levels at 0.7880 and 0.7890.
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.
An Australian CPI figure will be released at 0030 UTC.
EURGBP – 1 Hour Chart
The EURGBP 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 price moves out of the range (break-out trade). The moving averages confirm the current indecision – they have been crossing frequently.
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
As suggested in yesterday’s chart analysis, the EURUSD has reversed around the horizontal support at 1.1735. Price continues to be choppy and indecisive. The moving averages have been crossing frequently and are currently moving sideways – confirming the current indecision. Trading opportunities may exist around the identified horizontal levels at 1.1685, 1.1735, 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
Just like some other USD pairs, the GBPUSD continues to be choppy and indecisive. The moving averages have been crossing frequently and are tight – confirming the market indecision. Price could reverse around the horizontal levels at 1.3030, 1.3100, 1.3220 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
As suggested in yesterday’s chart analysis, price reversed around the 23.6% Fib level and has swung lower. The NZDUSD is moving in a downward direction and the moving averages are bearish, signalling that price may start down-trending. Selling opportunities could exist around the dynamic resistance of the moving averages and around the horizontal levels at 0.6940, 0.7000 and 0.7055.
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
Price is above the recent consolidation area and the moving averages are bullish and are widening, all suggesting that the USDCAD could start up-trending. Buying opportunities may exist around the dynamic support of the moving averages, around any of the key Fib levels, around the previous swing highs at 1.2590 and 1.2575 and around the previous symmetrical triangle resistance area. A bullish move could stall or reverse around the recent high at 1.2655.
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
As suggested in yesterday’s chart analysis, price reversed bullish around the 23.6% Fib level and has formed a swing higher. The USDCHF has formed a swing higher and the moving averages are bullish and are widening, signalling that price may attempt a swing higher. Opportunities to go long could exist around the dynamic support of the moving averages, around any of the key Fib levels and around the previous horizontal resistance at 0.9830. A bullish move may stall or reverse around the recent high at 0.9880.
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
The USDJPY has been bearish and is retracing some of the recent bullish move. Price is up-trending – price action has formed a series of higher swing highs and higher swing lows. The moving averages are bullish and are steady, suggesting the the upside momentum could continue. Long opportunities may exist around the bullish moving averages, around the previous swing high at 113.10 and around the trend support area. A move to the upside could be rejected or reverse around the recent swing high at 114.05.
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, 1273.10, 1290.20 and 1305.95.
Hits: 3