TriumphFX Intraday Forex Analysis – 1 Hour Charts – May 31, 2018
AUDUSD – 1 Hour Chart
Price has been bullish and has become indecisive again. The AUDUSD is lacking trend direction. The moving averages confirm this – they are tightening and are moving sideways. Trading opportunities may exist around the horizontal levels at 0.7450, 0.7480, 0.7580, 0.7590 and 0.7600.
The Reserve Bank of Australia (RBA) have held the official interest rate at 1.5% for over 18 months. The Australian economy continues to grow at a steady pace and produce positive economic indicators under the low interest rate – giving incentive to keep the rate as it is. The US Federal Open Market Committee (FOMC) recently raised rates to 1.75%. Recent employment and other economic data for the US has been very positive. This suggests that there could be further rate hikes in the near future. This has given strength to the US Dollar.
US crude oil inventories is at 1500 UTC today.
EURGBP – 1 Hour Chart
As suggested in yesterday’s chart analysis, price has reversed around the bearish channel resistance area. The EURGBP looks indecisive but is moving within a bearish channel. Trading opportunities could exist around the horizontal levels at 0.8700, 0.8740, 0.8795 and 0.8825 and around the channel resistance area.
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%. There are hints that the Bank of England (BOE) will hike the interest rate 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 – the euro-zone economy is performing well. Recent comments by the ECB have been fairly dovish though. Most economists believe that the current economy boom will slow-down and that an interest rate hike is not in the near future.
There is no major scheduled news today that will directly impact this currency pair.
EURUSD – 1 Hour Chart
The EURUSD has been bullish. Price is above the moving averages and above the trend resistance area, all suggesting that the downtrend could now be over. The moving averages confirm this – they are no longer bearish but tightening and moving sideways. Trading opportunities may exist around the previous trend resistance area (as support), around the moving averages and around the horizontal levels at 1.1525, 1.1645, 1.1740 and 1.1835.
The US Federal Open Market Committee (FOMC) recently raised rates to 1.75%. Recent employment and other economic data for the US has been very positive. This suggests that there could be further rate hikes in the near future. This has given strength to the US Dollar. 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 – the euro-zone economy is performing well. Recent comments by the ECB have been fairly dovish though. Most economists believe that the current economy boom will slow-down and that an interest rate hike is not in the near future.
US crude oil inventories is at 1500 UTC today.
GBPUSD – 1 Hour Chart
Just like the EURUSD, the GBPUSD has been bullish and has moved above the moving averages and trend resistance area. Trading opportunities could exist around the identified horizontal levels at 1.3230, 1.3340, 1.3405 and 1.3475, around the moving averages and around the previous trend resistance area (as support).
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%. There are hints that the Bank of England (BOE) will hike the interest rate again in the near future. The US Federal Open Market Committee (FOMC) recently raised rates to 1.75%. Recent employment and other economic data for the US has been very positive. This suggests that there could be further rate hikes in the near future. This has given strength to the US Dollar.
US crude oil inventories is at 1500 UTC today.
NZDUSD – 1 Hour Chart
As suggested in yesterday’s chart analysis, price broke to the upside of the range and then reversed around the horizontal resistance at 0.6995. The NZDUSD is above the recent range and the moving averages are bullish and are widening, all signalling that price could start up-trending. Buying opportunities may exist around the previous horizontal resistance levels at 0.6970 and 0.6960 and around the dynamic support of the moving averages.
The Reserve Bank of New Zealand (RBNZ) recently kept rates at 1.75% and announced that there will unlikely be a rate hike in the foreseeable future – there is some economic uncertainty caused by New Zealand’s GDP and CPI figures. The New Zealand Dollar continues to be attractive to currency investors due to the yield on carry trades. The US Federal Open Market Committee (FOMC) recently raised rates to 1.75%. Recent employment and other economic data for the US has been very positive. This suggests that there could be further rate hikes in the near future. This has given strength to the US Dollar.
US crude oil inventories is at 1500 UTC today.
USDCAD – 1 Hour Chart
Price has been bearish and has become indecisive. The moving averages are tight and are moving sideways – confirming the lack of trend direction. Trading opportunities could exist around the horizontal levels at 1.2730, 1.2745, 1.2830, 1.2905, 1.2920, 1.2975 and 1.3040.
The Bank of Canada (BOC) recently raised rates to 1.25%. A recent rally on the oil markets has given some strength to the Canadian Dollar. Economists believe that the BOC will increase the interest rate at least 1 more time before the end of 2018. The US Federal Open Market Committee (FOMC) recently raised rates to 1.75%. Recent employment and other economic data for the US has been very positive. This suggests that there could be further rate hikes in the near future. This has given strength to the US Dollar.
A Canadian GDP figure will be released at 1230 UTC today. This is followed by US crude oil inventories at 1500 UTC.
USDCHF – 1 Hour Chart
As suggested in yesterday’s chart analysis, the USDCHF is finding support around the range support area. Price continues to be indecisive and range between the horizontal levels at 0.9880 and 0.9975. 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 the USDCHF moves out of the range (break-out trade).
The US Federal Open Market Committee (FOMC) recently raised rates to 1.75%. Recent employment and other economic data for the US has been very positive. This suggests that there could be further rate hikes in the near future. This has given strength to the US Dollar. The bearish stock markets may give strength to the Swiss Franc as the CHF is a safe-haven currency. The concern of a potential tariff war between the US and China may also give strength to the CHF.
US crude oil inventories is at 1500 UTC today.
USDJPY – 1 Hour Chart
The USDJPY reversed around the previous swing low at 109.05 and has since been bearish (as suggested in yesterday’s chart analysis). Price continues to downtrend. The moving averages are bearish and are widening, signalling that the downtrend may continue. Selling opportunities could exist around the dynamic resistance of the moving averages and around the horizontal level at 109.05. A bearish move may be rejected or reverse around the recent swing low at 108.25.
The US Federal Open Market Committee (FOMC) recently raised rates to 1.75%. Recent employment and other economic data for the US has been very positive. This suggests that there could be further rate hikes in the near future. This has given strength to the US Dollar. Due to the recent plunge in global stock markets, the Yen (safe haven currency) has seen added strength. If stock markets become bearish, the Yen may continue to strength. The concern of a potential tariff war between the US and China may also give strength to the Yen. The Bank of Japan (BOJ) has not changed the official interest rate since early 2016. Economic indicators for Japan continue to show signs of moderate growth.
US crude oil inventories is at 1500 UTC today.
XAUUSD – 1 Hour Chart
As suggested in yesterday’s chart analysis, price has been finding resistance around the horizontal resistance at 1304.10. GOLD continues to be indecisive. The moving averages are tight and are moving sideways – confirming the market indecision. Trading opportunities could exist around the horizontal levels at 1282.75, 1288.65, 1294.50, 1304.10 and 1307.50. If price closes above the horizontal resistance at 1307.50, GOLD may attempt a bullish move higher.
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