TriumphFX Intraday Forex Analysis – 1 Hour Charts – December 07, 2017
AUDUSD – 1 Hour Chart
The AUDUSD has been bearish and has reached the consolidation support area. Price has been consolidating between the horizontal support at 0.7530 and the horizontal resistance at 0.7655 for a number of weeks. The moving averages have been crossing frequently and are moving sideways – confirming the current indecision. If the AUDUSD closes below the consolidation support area, price may start down-trending. Shorting opportunities could exist around the previous horizontal support levels at 0.7530 and 0.7555 and around the dynamic resistance of the moving averages.
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.
US unemployment claims is at 1330 UTC today.
EURGBP – 1 Hour Chart
As suggested in yesterday’s chart analysis, the EURGBP has reversed around the range resistance area. Price continues to be indecisive and move within the horizontal channel at 0.8760-0.8850. The moving averages confirm the current indecision – they are tight and have been crossing frequently. Price action has formed a tightening triangular pattern. Trading opportunities may exist around the support and resistance areas of both consolidation patterns and if the EURGBP moves out of either pattern (break-out trade).
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 very positive. The Bank of England have an increased the base interest rate by 0.25% but have no plans to increase rates again in the near future. 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.
The President of the European Central Bank (ECB) will speak at 1600 UTC today.
EURUSD – 1 Hour Chart
Price has been bearish and has formed a swing lower (as suggested in yesterday’s chart analysis). The EURUSD is currently down-trending – price action has formed a series of lower swing highs and lower swing lows. The moving averages are bearish and are steady, suggesting that the downtrend may continue. Selling opportunities could exist around the trend resistance area, around the dynamic resistance of the moving averages and around the previous horizontal support at 1.1830. A move to the downside may stall or reverse around the recent lows at 1.1720.
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.
US unemployment claims is at 1330 UTC today. The President of the European Central Bank (ECB) will speak at 1600 UTC.
GBPUSD – 1 Hour Chart
The retrace move has continued – price continues to be bearish. The moving averages are bearish and are steady, signalling that the recent uptrend could be over. Selling opportunities may exist around the diagonal resistance area, around the bearish moving averages and around the horizontal resistance levels at 1.3455, 1.3515 and 1.3545. If the GBPUSD closes above the diagonal resistance area, price could attempt a bullish move.
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 very positive. The Bank of England have an increased the base interest rate by 0.25% but have no plans to increase rates again in the near future. 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.
US unemployment claims is at 1330 UTC today.
NZDUSD – 1 Hour Chart
The NZDUSD continues to be choppy and indecisive. The moving averages confirm the indecision – they have been crossing frequently and are moving sideways. Trading opportunities could exist around the identified horizontal levels at 0.6780, 0.6790, 0.6820, 0.6910 and 0.6945. Trading opportunities could also exist around the moving averages and around the diagonal support area.
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.
US unemployment claims is at 1330 UTC today.
USDCAD – 1 Hour Chart
Price has been very bullish and has moved above all key Fib levels. The USDCAD is now looking indecisive and is ranging between the recent lows at 1.2640 and the recent highs at 1.2905. The moving averages confirm the market indecision – they have been crossing frequently. Trading opportunities may exist around the support and resistance areas of the range and if price moves out of the range (break-out trade).
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.
US unemployment claims is at 1330 UTC today.
USDCHF – 1 Hour Chart
Just like most other USD pairs, the USDCHF continues to be indecisive. Price has moved above a key horizontal resistance level though and the moving averages are bullish and are widening, suggesting that the USDCHF could attempt an upside move. Opportunities to go long could exist around the dynamic support of the moving averages and around the previous horizontal resistance at 0.9885. A bullish move may be rejected or reverse around the recent highs at 0.9945.
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.
US unemployment claims is at 1330 UTC today.
USDJPY – 1 Hour Chart
Price continues to be indecisive. The moving averages are now moving sideways – confirming the indecision, Trading opportunities may exist around the identified horizontal levels at 110.90, 111.80, 112.05 and 113.00.
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.
US unemployment claims is at 1330 UTC today.
XAUUSD – 1 Hour Chart
As suggested in yesterday’s chart analysis, GOLD has continued to be bearish and move lower. Price is down-trending within a bearish channel. The moving averages are bearish and are widening, signalling that the selling momentum may continue. Shorting opportunities could exist around the previous swing low at 1262.60, around the channel resistance area, around the dynamic resistance of the moving averages and around the horizontal levels at 1268.20 and 1271.45. A move to the downside may stall or reverse around the channel support area.
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