TriumphFX Intraday Forex Analysis – 1 Hour Charts – December 02, 2019

AUDUSD – 1 Hour Chart

As suggested in Friday’s chart analysis, price has reversed around the horizontal support at 0.6760. AUDUSD has been down-trending but is now looking a little indecisive. The moving averages confirm this – they are tightening and also moving sideways. Price action has formed a tight horizontal channel at 0.6760-0.6780.

Trading opportunities could exist around the support and resistance areas of the horizontal channel and if AUDUSD moves out of the channel (break-out trade). A break to the upside may find resistance around the horizontal resistance levels at 0.6790, 0.6800 and 0.6830.

The Reserve Bank of Australia (RBA) has cut rates again by 0.25% to 0.75% (a record low). The current low rate is needed to help reduce the unemployment rate and stimulate economy . It is likely that official rate will stay low and may even be cut further. The US Federal Open Market Committee (FOMC) has cut rates by a further 25 points due to heightened concerns regarding the economy and ongoing trade tensions with China. The current Fed Funds rate is 2.00%. Pressures of economic recession and from the US President may lead to further rate reductions.

A US manufacturing PMI figure will be announced at 1500 UTC today. The RBA will announce the official cash rate and release a rate statement at 0330 UTC.

EURGBP – 1 Hour Chart

Price has been finding resistance around the longer-term moving average (as suggested in Friday’s chart analysis). EURGBP is down-trending within a bearish channel. The moving averages are bearish but are starting to tighten, signalling that price could struggle to swing lower.

Opportunities to go short may exist around the longer-term moving average, around the bearish channel resistance area and around the horizontal levels at 0.8530, 0.8540, 0.8545 and 0.8580. A bearish move could stall or reverse around the shorter-term moving average, around the recent swing low at 0.8500 and around the bearish channel support area.

The Bank of England (BOE) continues to hold interest rates at 0.75% – 50 base points higher than the 2016 & 2017 low of 0.25%. The official rate could see a limited and gradual increase if there is a smooth Brexit and economic indicators continue to show growth. Brexit deal talks are progressing positively, given strength to the GBP. The European Central Bank (ECB) have cut economic forecasts, some economists predicting that Europe is heading for recession. The official rate continues to be at the record low of 0.00%. This is likely to stay unchanged until the 2nd quarter of 2020.

The President of the ECB will speak at 1400 UTC today.

EURUSD – 1 Hour Chart

As suggested in yesterday’s chart analysis, EURUSD has reversed around 1.1025. Price continues to be indecisive and lack trend direction. The moving averages confirm the market indecision – they are tight and moving sideways.

Trading opportunities could exist around the moving averages and around the identified horizontal levels at 1.0990, 1.0995, 1.1030, 1.1040 and 1.1055.

The European Central Bank (ECB) have cut economic forecasts, some economists predicting that Europe is heading for recession. The official rate continues to be at the record low of 0.00%. This is likely to stay unchanged until the 2nd quarter of 2020. The US Federal Open Market Committee (FOMC) has cut rates by a further 25 points due to heightened concerns regarding the economy and ongoing trade tensions with China. The current Fed Funds rate is 2.00%. Pressures of economic recession and from the US President may lead to further rate reductions.

The President of the ECB will speak at 1400 UTC today. A US manufacturing PMI figure will be announced at 1500 UTC.

GBPUSD – 1 Hour Chart

GBPUSD continues to be indecisive and lack trend direction. The moving averages are moving sideways and have been crossing frequently – confirming the current indecision.

Trading opportunities may exist around the diagonal support and resistance areas and around any of the identified horizontal levels at 1.2820, 1.2835, 1.2885, 1.2905, 1.2945 and 1.2970.

The Bank of England (BOE) continues to hold interest rates at 0.75% – 50 base points higher than the 2016 & 2017 low of 0.25%. The official rate could see a limited and gradual increase if there is a smooth Brexit and economic indicators continue to show growth. Brexit deal talks are progressing positively, giving strength to the GBP. The US Federal Open Market Committee (FOMC) has cut rates by a further 25 points due to heightened concerns regarding the economy and ongoing trade tensions with China. The current Fed Funds rate is 2.00%. Pressures of economic recession and from the US President may lead to further rate reductions.