TriumphFX Intraday Forex Analysis – 1 Hour Charts – January 06, 2020


 

AUDUSD – 1 Hour Chart

 

Price has been up-trending but after a recent strong bearish move AUDUSD is looking indecisive. The moving averages are bearish and widening, suggesting that price could continue to be bearish and move lower.

Trading opportunities may exist around the bearish moving averages and around the identified horizontal levels at 0.6840, 0.6865, 0.6895, 0.6930 and 0.7030.

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. The current Fed Funds rate is currently 1.75%. The current monetary plan is to keep the rate unchanged for the foreseeable future. There is some concern that keeping rates low could cause greater issues in the US’ financial sector.

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

 

EURGBP – 1 Hour Chart

 

EURGBP is indecisive and is lacking trend direction. The moving averages confirm the market indecision – they are tight and moving sideways.

Trading opportunities could exist around the horizontal levels at 0.8450, 0.8585, 0.8560 and 0.8585. If price closes above 0.8585, 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%. There is some concern that rates will be cut due to the concern in the job market. The BOE’s approach with Brexit is still ‘wait and see what happens’. Brexit continues to cause volatile movements in GBP pairs. The European Central Bank (ECB) continue to keep rates at the record low of 0.00%. Due to weak trade growth and economic forecasts, rates are likely to stay low for the foreseeable future.

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

 

EURUSD – 1 Hour Chart 

 

The EURUSD is indecisive and is lacking trend momentum. The moving averages have been crossing frequently – confirming the current indecision. The moving averages are currently bearish and widening though, signalling that price could move lower.

Trading opportunities may exist around the moving averages and around the horizontal levels at 1.1110, 1.1130 and 1.1240.

The European Central Bank (ECB) continue to keep rates at the record low of 0.00%. Due to weak trade growth and economic forecasts, rates are likely to stay low for the foreseeable future.  The US Federal Open Market Committee (FOMC) has cut rates by a further 25 points due to heightened concerns regarding the economy. The current Fed Funds rate is currently 1.75%. The current monetary plan is to keep the rate unchanged for the foreseeable future. There is some concern that keeping rates low could cause greater issues in the US’ financial sector.

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

 

GBPUSD – 1 Hour Chart

 

Just like other USD pairs, the GBPUSD is looking indecisive. The moving averages are tight and have been crossing frequently – confirming the market indecision.

Trading opportunities could exist around any of the horizontal levels at 1.2915, 1.3055, 1.3265, 1.3315 and 1.3415.

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%. There is some concern that rates will be cut due to the concern in the job market. The BOE’s approach with Brexit is still ‘wait and see what happens’. Brexit continues to cause volatile movements in GBP pairs. The US Federal Open Market Committee (FOMC) has cut rates by a further 25 points due to heightened concerns regarding the economy. The current Fed Funds rate is currently 1.75%. The current monetary plan is to keep the rate unchanged for the foreseeable future. There is some concern that keeping rates low could cause greater issues in the US’ financial sector.

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

 

NZDUSD – 1 Hour Chart

 

Price has been up-trending but after a recent strong bearish move NZDUSD is looking indecisive. The moving averages are bearish and widening, suggesting that price could continue to be bearish and move lower.

Selling opportunities may exist around the dynamic resistance of the moving averages. A bearish move could stall or reverse around the horizontal levels at 0.6620 and 0.6555.

The Reserve Bank of New Zealand (RBNZ) unexpectedly have kept rates at the record low of 1.00%. Due to poor economic indicators, there are no forecast rate hikes in the near future. Further cuts could happen during 2020. The US Federal Open Market Committee (FOMC) has cut rates by a further 25 points due to heightened concerns regarding the economy. The current Fed Funds rate is currently 1.75%. The current monetary plan is to keep the rate unchanged for the foreseeable future. There is some concern that keeping rates low could cause greater issues in the US’ financial sector.

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

 

USDCAD – 1 Hour Chart 

 

USDCAD has been down-trending. Price is currently indecisive though and has formed a tight horizontal channel at 1.2960-1.3005. The moving averages are tightening and are starting to move sideways – confirming the current indecision.

Trading opportunities could exist around the support and resistance areas of the channel and if USDCAD moves out of the channel (break-out trade). Shorting opportunities could exist around the moving averages.

The US Federal Open Market Committee (FOMC) has cut rates by a further 25 points due to heightened concerns regarding the economy. The current Fed Funds rate is currently 1.75%. The current monetary plan is to keep the rate unchanged for the foreseeable future. There is some concern that keeping rates low could cause greater issues in the US’ financial sector. 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.

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

 

USDCHF – 1 Hour Chart

 

The USDCHF is down-trending and is currently in a retrace phase. The moving averages have crossed bullish, suggesting that price could struggle to swing lower.

Opportunities to go short may exist around any of the key Fib levels and around the horizontal levels at 0.9735 and 0.9775. A bearish move could be rejected or reverse around the moving averages and around the recent lows at 0.9650.

The US Federal Open Market Committee (FOMC) has cut rates by a further 25 points due to heightened concerns regarding the economy. The current Fed Funds rate is currently 1.75%. The current monetary plan is to keep the rate unchanged for the foreseeable future. There is some concern that keeping rates low could cause greater issues in the US’ financial sector. The Swiss National Bank (SNB) continues to keep rates at the all-time low of -0.75%. The Swiss economy continues to be stagnant but has been showing signs of positive momentum. 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 but will likely keep rates unchanged until at least 2021.

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

 

USDJPY – 1 Hour Chart

 

Price is down-trending and is currently in a retrace move. The moving averages are bearish and steady, signalling that the downtrend may continue.

Selling opportunities could exist around the dynamic resistance of the moving averages, around any of the key Fib levels and around the horizontal levels at 108.50, 108.85 and 109.20. A bearish move may find support around the recent lows at 107.80.

The US Federal Open Market Committee (FOMC) has cut rates by a further 25 points due to heightened concerns regarding the economy. The current Fed Funds rate is currently 1.75%. The current monetary plan is to keep the rate unchanged for the foreseeable future. There is some concern that keeping rates low could cause greater issues in the US’ financial sector.  The Bank of Japan (BOJ) continues to keep interest rates at the record low of -0.10%. The Japanese economy is performing well and showing signs of expansion.

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

 

XAUUSD – 1 Hour Chart

 

GOLD has been bullish and is clearly up-trending. The moving averages are bullish and widening, suggesting that the uptrend could continue.

If price starts retracing, buying opportunities may exist around any of the key Fib levels, around the dynamic support of the moving averages and around the trend support area. GOLD could stall or reverse around the recent highs at 1578.

 

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