TriumphFX Intraday Forex Analysis – 1 Hour Charts – January 22, 2018
AUDUSD – 1 Hour Chart
Price closed above the recent range resistance area but quickly reversed bearish. The AUDUSD continues to be indecisive. The moving averages are starting to move sideways – confirming the current indecision. Trading opportunities could exist around the horizontal levels at 0.8035, 0.7935, 0.7895 and 0.780 and around the previous trend support area.
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.
There is no major scheduled news today that will directly impact this currency pair.
EURGBP – 1 Hour Chart
As suggested in Friday’s chart analysis, price has reversed around the horizontal level at 0.8845. The EURGBP continues to be indecisive. The moving averages are bearish, signalling that price could attempt a bearish move lower. Shorting opportunities may exist around the dynamic resistance of the moving averages and around the horizontal levels at 0.8840, 0.8845 and 0.8860. If the EURGBP moves below the horizontal support at 0.8800, price could attempt a bearish move lower.
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. If Catalonia independence becomes more likely, the euro could weaken.
There is no major scheduled news today that will directly impact this currency pair.
EURUSD – 1 Hour Chart
The EURUSD continues to be indecisive and range between the recent swing low at 1.2165 and the horizontal resistance at 1.2300. The moving averages are moving sideways and crossing frequently – confirming the market indecision. Price recently reversed around the range resistance area (as suggested in Friday’s chart analysis). Trading opportunities could exist around the support and resistance areas of the range and if the EURUSD moves out of the range (break-out trade). If price breaks to the downside, the EURUSD may stall or reverse around the horizontal levels at 1.2080 and 1.2005.
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. If Catalonia independence becomes more likely, the euro could weaken.
There is no major scheduled news today that will directly impact this currency pair.
GBPUSD – 1 Hour Chart
The GBPUSD has been up-trending – price action has formed a series of higher swing highs and higher swing lows. The most recent swing high was not much higher than the previous swing high and the bullish moving averages are starting to move sideways – all suggesting that buying momentum is weakening. Price may become bearish. A move to the upside could reverse around the horizontal resistance at 1.3935
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.
There is no major scheduled news today that will directly impact this currency pair.
NZDUSD – 1 Hour Chart
As suggested in Friday’s chart analysis, the NZDUSD is indecisive and is lacking trend direction. The moving averages confirm the market indecision – they are tight and are crossing frequently. Price is ranging between the horizontal support at 0.7235 and the recent high at 0.7330. Trading opportunities may exist around the support and resistance areas of the range and if the NZDUSD closes out of the range (break-out trade). Price action has formed a bullish channel. Long opportunities could exist around the channel support area. If price breaks to the downside, the NZDUSD could be rejected or reverse around the horizontal levels at 0.7220, 0.7215, 0.7185 and 0.7140.
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.
There is no major scheduled news today that will directly impact this currency pair.
USDCAD – 1 Hour Chart
Price closed above the tighter range resistance area and then swung higher (as suggested in Friday’s chart analysis). The USDCAD continues to range between the horizontal support at 1.2370 and the recent swing high at 1.2580. Trading opportunities could exist around the support and resistance areas of the range and if price moves out of the range (break-out trade). The USDCAD is above the tighter range from last week and has also formed a bullish channel, all signalling that price may become bullish. Opportunities to go long could exist around the previous resistance at 1.2470, around the moving averages and around the channel support area. A move to the upside may be rejected or reverse around the channel resistance area.
The Bank of Canada recently raised rates to 1.25%. 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.
There is no major scheduled news today that will directly impact this currency pair.
USDCHF – 1 Hour Chart
Price has been bullish. The USDCHF is above the recent bearish channel resistance area, signalling that the selling momentum is weakening – the recent downtrend could now be over. The moving averages are moving sideways, suggesting that price could become indecisive. The USDCHF is ranging between the horizontal levels at 0.9540 and 0.9665. Trading opportunities may exist around the support and resistance areas of the range and if price moves out of the range (break-out trade). Buying opportunities may exist around the previous bearish channel resistance area (as support).
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.
There is no major scheduled news today that will directly impact this currency pair.
USDJPY – 1 Hour Chart
The USDJPY has been bearish and has become indecisive. The moving averages confirm this – they are moving sideways. Trading opportunities could exist around the horizontal levels at 110.30, 111.45, 111.65, 111.80 and 112.15.
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.
The Bank of Japan (BoJ) will release a monetary policy statement, an outlook report and announce interest rates between 0330-0530 UTC. This is followed by a press conference at 0630 UTC.
XAUUSD – 1 Hour Chart
GOLD continues to be indecisive. The moving averages are moving sideways – confirming the market indecision. Price is ranging between the horizontal level at 1324.50 and the horizontal resistance at 1343.70. Trading opportunities may exist around the support and resistance areas of the range and if GOLD moves out of the range (break-out trade). A move to the downside could find support around the horizontal levels at 1309.50 and 1306.55.
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