TriumphFX Intraday Forex Analysis – 1 Hour Charts – January 08, 2020


 

AUDUSD – 1 Hour Chart

 

As suggested in yesterday’s chart analysis, price has continued to be bearish and move lower. The moving averages are bearish and steady, signalling that the downside direction could continue.

Selling opportunities may exist around the dynamic resistance of the moving averages, around any of the key Fib levels and around the horizontal levels at 0.6895 and 0.6925. A bearish move could find support around 0.6960 and 0.6840.

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.

US ADP non-farm employment change is at 1315 UTC today. This is followed by a speech from US President Trump in response to Iran’s missiles. A Australian trade balance figure will be released at 0030 UTC.

 

EURGBP – 1 Hour Chart

 

Price has swung lower and is bearish (as suggested in yesterday’s chart analysis). The EURGBP is down-trending within a bearish channel. The moving averages have been crossing frequently though, signalling potential market indecision.

Opportunities to go short could exist around the dynamic resistance of the moving averages, around the channel resistance area and around the horizontal levels at 0.8485, 0.8540 and 0.8560. A bearish move may be rejected or reverse around the channel support area and around the horizontal support at 0.8450.

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 

 

As suggested in yesterday’s chart analysis, the EURUSD has been finding support around 1.1130. Price is looking indecisive and is lacking trend direction. The moving averages confirm the indecision – they are tight and moving sideways.

Trading opportunities may exist around the moving averages and around the horizontal levels at 1.1070, 1.1110, 1.1130, 1.1205 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.

US ADP non-farm employment change is at 1315 UTC today. This is followed by a speech from US President Trump in response to Iran’s missiles.

 

GBPUSD – 1 Hour Chart

 

The GBPUSD continues to be indecisive. The moving averages confirm the current indecision – they have been crossing frequently and are moving sideways.

Trading opportunities could exist around any of the identified horizontal levels at 1.2915, 1.3055, 1.3190, 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.

US ADP non-farm employment change is at 1315 UTC today. This is followed by a speech from US President Trump in response to Iran’s missiles.

 

NZDUSD – 1 Hour Chart

 

As suggested in yesterday’s chart analysis, price broke to the downside of the horizontal channel and then reversed around 0.6620. NZDUSD is now looking indecisive again. The moving averages are starting to tighten and move sideways – confirming the market indecision. Price is ranging between the horizontal levels at 0.6625 and 0.6675.

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

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.

US ADP non-farm employment change is at 1315 UTC today. This is followed by a speech from US President Trump in response to Iran’s missiles.

 

USDCAD – 1 Hour Chart 

 

USDCAD has broken to the upside of the horizontal channel. Price is still looking indecisive though and is now ranging between 1.2960 and 1.3015. The moving averages are tight and moving sideways – confirming the indecision.

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

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.

US ADP non-farm employment change is at 1315 UTC today. This is followed by a speech from US President Trump in response to Iran’s missiles.

 

USDCHF – 1 Hour Chart

 

Price continues to be indecisive. The moving averages confirm the current indecision – they have been crossing frequently and are moving sideways.

Trading opportunities may exist around any of the identified horizontal levels at 0.9650, 0.9670, 0.9720, 0.9735 and 0.9770.

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.

US ADP non-farm employment change is at 1315 UTC today. This is followed by a speech from US President Trump in response to Iran’s missiles.

 

USDJPY – 1 Hour Chart

 

As suggested in yesterday’s chart analysis, price attempted to swing lower and found support around the recent lows at 107.80. USDJPY is now looking indecisive. The moving averages are tight and moving sideways – confirming the indecision.

Trading opportunities could exist around the identified horizontal levels at 107.80, 108.50, 108.60, 108.85 and 109.20.

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.

US ADP non-farm employment change is at 1315 UTC today. This is followed by a speech from US President Trump in response to Iran’s missiles.

 

XAUUSD – 1 Hour Chart

 

GOLD has been bullish and has swung higher (as suggested in yesterday’s chart analysis). Price is clearly up-trending. Price action has formed a bullish channel and the moving averages are bullish and steady, all signalling that the uptrend could continue.

Buying opportunities may exist around the dynamic support of the moving averages, around the channel support area and around the horizontal levels at 1579 and 1557. A bullish move could find resistance around 1599 and the channel resistance area.

 

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