TriumphFX Intraday Forex Analysis – 1 Hour Charts – January 10, 2020


 

AUDUSD – 1 Hour Chart

 

As suggested in yesterday’s chart analysis, price has been reversing around the support and resistance areas of the range. The AUDUSD is currently moving sideways and is indecisive after a strong bearish move. Price is ranging between 0.6850 and 0.6880. The moving averages are bearish and steady, signalling that the downside direction could continue.

Trading opportunities may 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 could stall or reverse around the lows at 0.6840. A break to the upside could stall or reverse around any of the key Fib levels and the horizontal level at 0.6925.

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 employment, unemployment and average hourly earnings figures will be released at 1330 UTC today.

 

EURGBP – 1 Hour Chart

 

Price has reversed around the bearish channel resistance area (as suggested in yesterday’s chart analysis). The EURGBP continues to downtrend within a bearish channel but also be slightly choppy and indecisive. The moving averages confirm the market indecision – they have been crossing frequently.

Selling opportunities could exist around the bearish channel resistance area and around the horizontal resistance levels at 0.8530, 0.8540, 0.8560 and 0.8585. A bearish move may be rejected or reverse around the horizontal support at 0.8450 and 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%. 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 continues to be bearish and downtrend. Price action has formed a bearish channel and the moving averages are bearish and widening, all signalling that the downtrend could continue.

Shorting opportunities may exist around the bearish moving averages, around the previous horizontal support at 1.1130 and around the channel resistance area. A bearish move could find support around the channel support area and the horizontal support at 1.1070.

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 employment, unemployment and average hourly earnings figures will be released at 1330 UTC today.

 

GBPUSD – 1 Hour Chart

 

GBPUSD has moved below the recent consolidation and has formed a bearish channel, all suggesting that price may start down-trending. The moving averages are bearish and widening – confirming the potential downside.

Opportunities to go short could exist around the dynamic resistance of the moving averages, around the channel resistance area and around the horizontal resistance at 1.3190. A bearish move may find support around the channel support area and around the horizontal support levels at 1.3060 and 1.3020.

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 employment, unemployment and average hourly earnings figures will be released at 1330 UTC today.

 

NZDUSD – 1 Hour Chart

 

As suggested in yesterday’s chart analysis, price closed below the range support area and has since been bearish. NZDUSD is below the recent consolidation area and the moving averages are bearish and steady, all signalling that price could start down-trending.

Selling opportunities may exist around the dynamic resistance of the moving averages, around the potential trend resistance area and around the horizontal levels at 0.6625 and 0.6675. A bearish move could find support around 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.

US employment, unemployment and average hourly earnings figures will be released at 1330 UTC today.

 

USDCAD – 1 Hour Chart 

 

Price has reversed off the previous horizontal support at 1.3105 (as suggested in yesterday’s chart analysis). USDCAD swung above all the key Fib levels and the moving averages are bullish and widening, all signalling that price may start up-trending.

Buying opportunities could exist around the bullish moving averages, around the diagonal support area and around the previous horizontal resistance at 1.3015. A bullish move may find resistance around 1.3105.

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 employment, unemployment and average hourly earnings figures will be released at 1330 UTC today. Canadian employment and unemployment figures will be announced at the same time.

 

USDCHF – 1 Hour Chart

 

As suggested in yesterday’s chart analysis, USDCHF has been finding support around the shorter-term moving average. Price is up-trending within a bullish channel. The moving averages are bullish and widening, signalling that the upside momentum could continue.

Long opportunities may exist around the bullish moving averages, around the channel support area and around the horizontal support levels at 0.9670 and 0.9650. A bullish move could be rejected or reverse around the channel resistance area and around the horizontal levels at 0.9735, 0.9745 and 0.9775.

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 employment, unemployment and average hourly earnings figures will be released at 1330 UTC today.

 

USDJPY – 1 Hour Chart

 

USDJPY has continued to be bullish and move higher (as suggested in yesterday’s chart analysis). Price has been bullish and has forming a swing high. The moving averages are bullish and widening, signalling that the USDJPY may start up-trending.

Opportunities to go long could exist around the bullish moving averages and around the horizontal levels at 109.20, 108.85 and 108.60. A bullish move may be rejected or reverse around the horizontal resistance at 109.65.

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 employment, unemployment and average hourly earnings figures will be released at 1330 UTC today.

 

XAUUSD – 1 Hour Chart

 

Price has been bearish. GOLD has swung below a number of key support levels, suggesting that the recent uptrend may now be over. The moving averages are tightening and moving sideways – confirming the lack of buying momentum. Price action may be forming a head and shoulder pattern, suggesting a potential bearish reversal.

 

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