TriumphFX Intraday Forex Analysis – 1 Hour Charts – December 20, 2017


 

AUDUSD – 1 Hour Chart

 

AUDUSD - 20.12.2017

As suggested in yesterday’s chart analysis, price continues to range (consolidate) and be indecisive. The AUDUSD is ranging between the recent swing low at 0.7640 and the recent high at 0.7690. Price action has formed a symmetrical triangle consolidation pattern. The moving averages are tight and are moving sideways – confirming the market indecision. Trading opportunities may exist around the support and resistance areas of both consolidation patterns and if the AUDUSD moves out of either consolidation pattern (break-out trades).

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.

US crude oil inventories is at 1530 UTC today.

 

EURGBP – 1 Hour Chart

 

EURGBP - 20.12.2017

Price has reversed again around the horizontal channel resistance area (as suggested in yesterday’s chart analysis). The EURGBP continues to be indecisive and move within 2 horizontal channels at 0.8760-0.8860 and 0.8695-0.8860. Price action has formed a trend support area and the moving averages have crossed bullish and are widening, all signalling that the EURGBP may attempt a bullish break-out. Opportunities to go long could exist around the dynamic support of the moving averages and around the trend support area. Price may continues to move off the horizontal channel support and resistance areas.

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.

The Governor of the Bank of England will speak at 1315 UTC today.

 

EURUSD – 1 Hour Chart

 

EURUSD - 20.12.2017

As suggested in yesterday’s chart analysis, the EURUSD is coming-off the identified horizontal resistance at 1.1845. Price continues to be choppy and indecisive. The moving averages confirm this – they have been crossing frequently. Trading opportunities may exist around any of the identified horizontal levels at 1.1720, 1.1735, 1.1810, 1.1845, 1.1875 and 1.1930.

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.

US crude oil inventories is at 1530 UTC today.

 

GBPUSD – 1 Hour Chart

 

GBPUSD - 20.12.2017

The GBPUSD is still moving within the descending triangle pattern and is currently coming-off the resistance area of the pattern (break-out trade). Price continues to be indecisive. The moving averages have been crossing frequently and are moving sideways – confirming the market indecision. Trading opportunities could exist around the support and resistance areas of the descending triangle (diagonal resistance and horizontal support at 1.3305) and if the GBPUSD moves out of the pattern (break-out trade). If price breaks to the upside, the GBPUSD may stall or reverse around the horizontal resistance levels at 1.3455, 1.3515 and 1.3545.

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 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 Governor of the Bank of England will speak at 1315 UTC today. US crude oil inventories is at 1530 UTC.

 

NZDUSD – 1 Hour Chart

 

NZDUSD - 20.12.2017

As suggested in yesterday’s chart analysis, price closed below the range support area and has since been bearish. As also suggested, price has been finding support around the previous horizontal resistance at 0.6955. The moving averages have crossed bearish and are starting to widen, signalling that the NZDUSD could move lower. Selling opportunities may exist around the previous horizontal support levels at 0.6975 and 0.6990 and around the dynamic resistance of the moving averages. A move to the downside could be rejected or reverse around the horizontal levels at 0.6955 and 0.6910.

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 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.

US crude oil inventories is at 1530 UTC today. A GDP for New Zealand will be released at 2145 UTC.

 

USDCAD – 1 Hour Chart

 

USDCAD - 20.12.2017

Price continues to be indecisive and lack trend direction. The moving averages confirm the current indecision – they are moving sideways. The USDCAD could reverse around the horizontal levels at 1.2745, 1.2845 and 1.2905. If price closes above the horizontal resistance at 1.2905, the USDCAD may attempt a bullish move higher.

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.

US crude oil inventories is at 1530 UTC today.

 

USDCHF – 1 Hour Chart

 

USDCHF - 20.12.2017

As suggested in yesterday’s chart analysis, the USDCHF has been finding support around the horizontal channel support area. Price continues to be indecisive and move within a horizontal channel at 0.9840-0.9930. The moving averages confirm the market indecision – they have been crossing frequently and are currently moving sideways. Trading opportunities could exist around the support and resistance areas of the horizontal channel and if the USDCHF moves out of the channel (break-out trade). Once price breaks-out, the USDCHF may stall or reverse around the horizontal levels at 0.9745 and 0.9970.

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 CHF is a safe-haven currency, which means it could strengthen if uncertainty in the US, the UK or Europe intensifies or if the possibility of war between the US and North Korea starts to solidify.

US crude oil inventories is at 1530 UTC today.

 

USDJPY – 1 Hour Chart

 

USDJPY - 20.12.2017

Just like most other currency pairs, the USDJPY is looking indecisive. Trading opportunities may exist around the horizontal levels at 111.80, 112.05, 112.80, 113.25 and 113.70.

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.

US crude oil inventories is at 1530 UTC today.

 

XAUUSD – 1 Hour Chart

 

XAUUSD - 20.12.2017

As suggested in yesterday’s chart analysis, GOLD reversed bullish around the shorter-term moving average and the previous horizontal resistance at 1259.60. Price action has formed a short series of higher swing lows and higher swing highs and the moving averages are bullish and steady, all signalling that the buying momentum may continue. Long opportunities could exist around the dynamic support of the moving averages and around the horizontal levels at 1259.60 and 1251.40. A move to the upside may be rejected or reverse around the previous horizontal support at 1271.35.

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