TriumphFX Intraday Forex Analysis – 1 Hour Charts – December 10, 2019


 

AUDUSD – 1 Hour Chart

 

As suggested in yesterday’s chart analysis, price has been finding support around 0.6815. The AUDUSD continues to be indecisive and lack trend direction. The moving averages confirm the market indecision – they are tight and moving sideways. Price continues to range between 0.6815 and 0.6855.

Trading opportunities could exist around the support and resistance areas of the range and if the AUDUSD moves out of the range (break-out trade). A break to the downside may stall or reverse around the horizontal levels at 0.6800, 0.6790 and 0.6780. A break to the upside may stall or reverse around the recent highs at 0.6860.

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.

There is no major scheduled news today that will directly impact this currency pair.

 

EURGBP – 1 Hour Chart

 

Price has reversed off the previous horizontal support at 0.8430 (as suggested in yesterday’s chart analysis). The EURGBP continues to downtrend and is currently in a retrace move. The moving averages are bearish and steady, signalling that the downtrend could continue.

Opportunities to go short may exist around the dynamic resistance of the moving averages and around the horizontal levels at 0.8430 and 0.8455. A bearish move could be rejected or reverse around the recent swing low at 0.8395.

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.

A German ZEW economic sentiment figure will be announced at 1000 UTC.

 

EURUSD – 1 Hour Chart 

 

As suggested in yesterday’s chart analysis, the EURUSD reversed around the moving averages. Price continues to be indecisive though. The moving averages have been crossing frequently – confirming the market indecision.

Trading opportunities could exist around the moving averages and around the horizontal levels at 1.1025, 1.1050, 1.1090 and 1.1110.

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.

A German ZEW economic sentiment figure will be announced at 1000 UTC.

 

GBPUSD – 1 Hour Chart

 

The GBPUSD has been clearly up-trending. Price action has now formed a potential horizontal channel though – the GBPUSD is ranging. The moving averages confirm the potential indecision – they are tightening and beginning to move sideways.

Trading opportunities may exist around the support and resistance areas of the range and if price moves out of the range (break-out trade).

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.

There is no major scheduled news today that will directly impact this currency pair.

 

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