TriumphFX Intraday Forex Analysis – 1 Hour Charts – December 23, 2019


 

AUDUSD – 1 Hour Chart

 

As suggested in Friday’s chart analysis, AUDUSD continues to move higher and be bullish. Price is up-trending. The moving averages are bullish and widening, signalling that the uptrend could continue.

Buying opportunities may exist around the dynamic support of the moving averages, around the trend support area and around the horizontal levels at 0.6895, 0.6865 and 0.6840. A bullish move could stall or reverse around the recent highs at 0.6930.

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

 

EURGBP has become indecisive. The moving averages are tightening and starting to move sideways – confirming the market indecision.

Trading opportunities could exist around the moving averages and around the horizontal levels at 0.8375, 0.8395, 0.8455, 0.8485, 0.8550 and 0.8570. If price closes above the highs at 0.8570, EURGBP may attempt a bullish move higher.

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. The Conservative party have won a parliament majority, given hope that the UK Prime Ministers Brexit deal can now be agreed. 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.

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

 

EURUSD – 1 Hour Chart 

 

As suggested in Friday’s chart analysis, price has been bearish and has moved lower. EURUSD is down-trending. The moving averages are bearish and widening, signalling that the downtrend could continue.

Selling opportunities may exist around the dynamic resistance of the moving averages, around the trend resistance area and around the horizontal levels at 1.1105, 1.1145, 1.1170 and 1.1185. A bearish move could find support around 1.1050.

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.

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

 

GBPUSD – 1 Hour Chart

 

Price has been finding resistance around the shorter-term moving average and channel resistance area (as suggested in Friday’s chart analysis). GBPUSD is down-trending and has formed a bearish channel. The moving averages are bearish and steady, signalling that the downtrend may continue.

Shorting opportunities could exist around the bearish moving averages, around the channel resistance area and around the horizontal levels at 1.3070, 1.3115 and 1.3225. A bearish move may find support around the 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. The Conservative party have won a parliament majority, given hope that the UK Prime Ministers Brexit deal can now be agreed. 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.

 

NZDUSD – 1 Hour Chart

 

The NZDUSD continues to be indecisive and lack trend direction. The moving averages have been crossing frequently and are moving sideways – confirming the current indecision. Price is ranging between 0.6555 and 0.6610.

Trading opportunities may exist around the support and resistance areas of the range and if the NZDUSD moves out of the range (break-out trade). A break to the downside could find support around 0.6520 and 0.6505.

The Reserve Bank of New Zealand (RBNZ) have cut rates further to a record low of 1.00%. Due to poor economic indicators, there are no forecast rate hikes in the near future. 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.

 

USDCAD – 1 Hour Chart 

 

As suggested in Friday’s chart analysis, the USDCAD reversed around the horizontal level at 1.3180. Price has swung above the recent trend resistance area and is now ranging between 1.3105 and 1.3180, suggesting that the recent downtrend may be over. The moving averages confirm this – they are tight and moving sideways.

Trading opportunities could exist around the previous trend resistance area (as support), around the support and resistance areas of the range and if the USDCAD moves out of the range (break-out trade). A break to the upside may be rejected or reverse around the horizontal levels at 1.3200 and 1.3225.

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 Bank of Canada (BOC) continues to raise interest rates at a steady pace. The current rate is 1.75% – it’s highest since December 2008. The economy is currently performing well and inflation targets are currently at their potential, meaning that the rate of 1.75% may not change in the near future.

A Canadian GDP figure will be released at 1330 UTC today.

 

USDCHF – 1 Hour Chart

 

Price has been bullish. The USDCHF has swung above the recent bearish channel resistance area, signalling that the recent downtrend is over. The moving averages are tight and moving sideways, signalling indecision.

Trading opportunities may exist around the moving averages, around the previous bearish channel resistance area (as support) and around the identified horizontal levels at 0.9775, 0.9830, 0.9870 and 0.9895.

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 Swiss National Bank (SNB) continues to keep rates at the all-time low of -0.75%. The Swiss economy was stagnant throughout late 2018 but has been showing signs of positive momentum in 2019. The Swiss Franc continues to be highly valued, especially due to the current global uncertainties around Brexit and the US. The SNB has announced that it will continue to intervene with in foreign exchange markets.

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

 

USDJPY – 1 Hour Chart

 

Just like other USD pairs, the USDJPY is indecisive and lacking trend momentum. Price is ranging between the horizontal levels at 109.20 and 109.70.

Trading opportunities could exist around the support and resistance areas of the range and if the USDJPY moves out of the range (break-out trade). A break to the downside may find support around the horizontal levels at 108.95, 108.85 and 108.80.

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 Bank of Japan (BOJ) continues to keep interest rates at the record low of -0.10%. The Japanese economy was under-performing in 2018 but is currently seeing signs of moderate expansion.

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

 

XAUUSD – 1 Hour Chart

 

As suggested in Friday’s chart analysis, GOLD closed above the range resistance area and has since been bullish. Price is above the recent consolidation area and the moving averages are bullish and widening, all signalling that GOLD could start up-trending.

Long opportunities may exist around the dynamic support of the moving averages, around the trend support area and around the horizontal levels at 1481, 1472 and 1465.

 

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