TriumphFX Inter-day Chart Analysis – Daily Charts – December 19, 2017


 

AUDUSD – Daily Chart

 

AUDUSD - 19.12.2017 - Daily

As suggested in our last inter-day chart analysis, price continued to find support around the trend support area. The AUDUSD soon became bearish though and has since moved below and back above the trend support area. Price is now looking a little indecisive. The moving averages confirm this – they are tightening and are moving sideways. Trading opportunities may exist around the horizontal levels at 0.7340, 0.7500, 0.7740 and 0.8055.

The Reserve Bank of Australia (RBA) recently held 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 and employment data strongly suggest that the Australian economy is improving. The US Federal Reserve recently raised rates to 1.50%. If political uncertainty intensifies in the US or between the US and it’s international relations, the USD may weaken.

 

EURGBP – Daily Chart

 

EURGBP - 19.12.2017 - Daily

Price has been reversing around the support and resistance areas (0.8730 & 0.9010) of the horizontal channel (as suggested in our last inter-day chart analysis). The moving averages are tightening and are moving sideways – confirming the current indecision. Trading opportunities could exist around the horizontal channel support and resistance areas and if the EURGBP moves out of the channel (break-out trade). Price may be rejected or reverse around the horizontal levels at 0.8340 and 0.9260.

Recent economic indicators for the UK have been positive and Brexit negotiations seem to be progressing – giving strength to the GBP. The Bank of England recently 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.

 

EURUSD – Daily Chart

 

EURUSD - 19.12.2017 - Daily

The EURUSD is ranging between the recent swing low at 1.1590 and the recent highs around 1.2030. The moving averages are tightening and are moving sideways – confirming the market indecision. Trading opportunities may exist around the support and resistance areas of the range and if price moves out of the range (break-out trade). If the EURUSD breaks to the downside, price could be rejected or reverse around the horizontal levels at 1.1280 and 1.0865.

The US Federal Reserve recently raised rates to 1.50%. If political uncertainty intensifies in the US or between the US and it’s international relations, the USD may 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.

 

USDCAD – Daily Chart

 

USDCAD - 19.12.2017 - Daily

Price is looking indecisive and is lacking trend momentum, just like many other currency pairs. Price action has formed a tight horizontal channel at 1.2670-1.2890. The moving averages confirm the current indecision – they are starting to tighten. Trading opportunities could exist around the support and resistance areas of the horizontal channel and if the USDCAD moves out of the channel (break-out trade). When price moves out of the channel, the USDCAD may be rejected or reverse around the horizontal levels at 1.2100, 1.2425 and 1.3015.

The Bank of Canada recently raised rates to 1.00%. The US Federal Reserve recently raised rates to 1.50%. If political uncertainty intensifies in the US or between the US and it’s international relations, the USD may weaken.

 

USDJPY – Daily Chart

 

USDJPY - 19.12.2017 - Daily

As suggested in our last inter-day chart analysis, price continues to move within the large horizontal channel at 107.80-114.40 and be indecisive. The moving averages have just crossed bullish though and are widening, signalling that the USDJPY could attempt a bullish move. Trading opportunities may exist around the support and resistance areas of the horizontal channel and if price moves out of the channel (break-out trade). If the USDJPY does move to the upside, price could find resistance around the recent highs at 118.25.

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, the UK or Europe intensifies 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 recently raised rates to 1.50%. If political uncertainty intensifies in the US or between the US and it’s international relations, the USD may weaken.

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