TriumphFX Intraday Forex Analysis – 1 Hour Charts – June 01, 2020




AUDUSD

AUDUSD 1 Hour Chart

As suggested in Friday’s chart analysis, price has been bullish and has swung higher. AUDUSD is clearly up-trending – price action has formed a series of higher swing highs and higher swing lows. AUDUSD is up-trending within a clear bullish channel. The moving averages are bullish and steady, suggesting that the upside direction may continue.

Buying opportunities could exist around the bullish moving averages, around the previous horizontal resistance at 0.6675 and around the bullish channel support area. Price may find resistance around the channel resistance area.

The Reserve Bank of Australia (RBA) cut rates again in their April 2020 meeting. Rates were cut by a further 0.25%, bringing the official bank rate to 0.25% (a record low). Rates have since stayed the same. The current low rate is needed to help reduce the unemployment rate and stimulate the economy due to COVID-19 recession fears. The RBA will continue to monitor the labour market and inflation. Rates will not be raised until targets are met.

The Federal Reserve has announced a record breaking stimulus package, aimed at US households and employers. The US Federal Open Market Committee (FOMC) has unexpectedly cut rates by 150 points due to heightened concerns regarding the COVID-19 outbreak. The current Fed Funds rate is currently 0.25%, back at post-2008 levels. There is some concern that keeping rates low could cause greater issues in the US’ financial sector. The USD has been acting as a safe haven amid the COVID-19 outbreak. There are some concerns that the COVID-19 pandemic may hit the US hardest, causing a reversal of the recent USD strength.

A US manufacturing PMI figure will be released at 1400 UTC today. The RBA will released a rate statement and announce the official interest rate at 0530 UTC.

EURGBP

EURGBP 1 Hour Chart

Price has been up-trending and is now in a retrace phase. The moving averages are starting to move sideways and tighten, suggesting market indecision – EURGBP could struggle to swing higher.

Trading opportunities may exist around the moving averages and around the horizontal levels at 0.8865, 0.8885 and 0.9050.

The European Central Bank (ECB) continue to keep rates at the record low of 0.00%. Rates have not been cut into negative territory, despite the COVID-19 outbreak. Instead, the ECB has launched an asset buying program. Due to weak trade growth and economic forecasts, rates are likely to stay low for the foreseeable future. The COVID-19 pandemic is just another economic challenge for the Euro zone.

The Bank of England (BOE) has followed other central banks and has cut rates to combat economic challenges caused by the COVID-19 pandemic. The UK interest rate is now set at 0.10% (a historic low). The UK has now left the EU, meaning that Brexit uncertainty should weigh less heavily on the Pound.

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

EURUSD

EURUSD 1 Hour Chart

As suggested in Friday’s chart analysis, EURUSD has been bullish and has been moving higher. Price is up-trending. The moving averages are bullish and steady, signalling that the uptrend may continue. EURUSD has broken a key resistance on higher time-frames, adding confidence that the uptrend may continue.

Long opportunities could exist around the dynamic support of the moving averages and around the horizontal levels at 1.1025 and 1.0955.

The Federal Reserve has announced a record breaking stimulus package, aimed at US households and employers. The US Federal Open Market Committee (FOMC) has unexpectedly cut rates by 150 points due to heightened concerns regarding the COVID-19 outbreak. The current Fed Funds rate is currently 0.25%, back at post-2008 levels. There is some concern that keeping rates low could cause greater issues in the US’ financial sector. The USD has been acting as a safe haven amid the COVID-19 outbreak. There are some concerns that the COVID-19 pandemic may hit the US hardest, causing a reversal of the recent USD strength.

The European Central Bank (ECB) continue to keep rates at the record low of 0.00%. Rates have not been cut into negative territory, despite the COVID-19 outbreak. Instead, the ECB has launched an asset buying program. Due to weak trade growth and economic forecasts, rates are likely to stay low for the foreseeable future. The COVID-19 pandemic is just another economic challenge for the Euro zone.

A US manufacturing PMI figure will be released at 1400 UTC today.

GBPUSD

GBPUSD 1 Hour Chart

GBPUSD reversed around the moving averages and has since been bullish (as suggested in Friday’s chart analysis). Price is now finding resistance around the bullish channel resistance area (as also suggested). GBPUSD is up-trending and moving within a bullish channel. The moving averages are bullish and steady, suggesting that the upside direction could continue. Price is down-trending on higher time-frames though, signalling that GBPUSD could attempt a bearish move lower.

Opportunities to go long may exist around the diagonal support areas, around the dynamic support of the moving averages and around the horizontal levels at 1.2370, 1.2295 and 1.2210. Price could continue to find resistance around the bullish channel resistance area.

The Federal Reserve has announced a record breaking stimulus package, aimed at US households and employers. The US Federal Open Market Committee (FOMC) has unexpectedly cut rates by 150 points due to heightened concerns regarding the COVID-19 outbreak. The current Fed Funds rate is currently 0.25%, back at post-2008 levels. There is some concern that keeping rates low could cause greater issues in the US’ financial sector. The USD has been acting as a safe haven amid the COVID-19 outbreak. There are some concerns that the COVID-19 pandemic may hit the US hardest, causing a reversal of the recent USD strength.

The Bank of England (BOE) has followed other central banks and has cut rates to combat economic challenges caused by the COVID-19 pandemic. The UK interest rate is now set at 0.10% (a historic low). The UK has now left the EU, meaning that Brexit uncertainty should weigh less heavily on the Pound.

A US manufacturing PMI figure will be released at 1400 UTC today.

USDCAD

USDCAD 1 Hour Chart

As suggested in Friday’s chart analysis, price reversed around the support and resistance areas of the range. The USDCAD has since closed below the range support area and has since been bearish (as also suggested). Price is down-trending. The moving averages are bearish and steady, signalling that the downtrend may continue. The USDCAD is up-trending on higher time-frames though, suggesting that price may attempt a move higher.

Selling opportunities could exist around the bearish moving averages, around the trend resistance area and around the horizontal levels at 1.3735, 1.3820 and 1.3875.

The Bank of Canada (BOC) followed the US by slashing it’s benchmark interest rate. The intent of the rate cut is to help boost the economy during the COVID-19 pandemic. The current rate is now 0.25%. The economy is currently performing well and inflation targets are currently at their potential. If coronavirus fears deescalate, the BOC could increase rates again in the near future.

The Federal Reserve has announced a record breaking stimulus package, aimed at US households and employers. The US Federal Open Market Committee (FOMC) has unexpectedly cut rates by 150 points due to heightened concerns regarding the COVID-19 outbreak. The current Fed Funds rate is currently 0.25%, back at post-2008 levels. There is some concern that keeping rates low could cause greater issues in the US’ financial sector. The USD has been acting as a safe haven amid the COVID-19 outbreak. There are some concerns that the COVID-19 pandemic may hit the US hardest, causing a reversal of the recent USD strength.

A US manufacturing PMI figure will be released at 1400 UTC today.

USDCHF 

USDCHF 1 Hour Chart

Price has been bearish and has moved lower (as suggested in Friday’s chart analysis). The USDCHF is down-trending – price action has formed a series of lower swing highs and lower swing lows. Price is below a recent consolidation area and the moving averages are bearish and widening, signalling that the downside direction may continue. The USDCHF is down-trending on higher time-frames also, adding confidence that the trend may continue.

Shorting opportunities could exist around the bearish moving averages, around the trend resistance area and around the previous horizontal support levels at 0.9640 and 0.9650.

The Swiss National Bank (SNB) continues to keep rates at the all-time low of -0.75%. The Swiss economy continues to be stagnant. The economy was showing signs of positive momentum but COVID-19 is causing the economic to contraction. The Swiss Franc continues to be highly valued as a safe-haven currency. The SNB recently announced that it will continue to intervene with in foreign exchange markets but will likely keep rates unchanged until at least 2021.

The Federal Reserve has announced a record breaking stimulus package, aimed at US households and employers. The US Federal Open Market Committee (FOMC) has unexpectedly cut rates by 150 points due to heightened concerns regarding the COVID-19 outbreak. The current Fed Funds rate is currently 0.25%, back at post-2008 levels. There is some concern that keeping rates low could cause greater issues in the US’ financial sector. The USD has been acting as a safe haven amid the COVID-19 outbreak. There are some concerns that the COVID-19 pandemic may hit the US hardest, causing a reversal of the recent USD strength.

A US manufacturing PMI figure will be released at 1400 UTC today.

USDJPY

USDJPY 1 Hour Chart

The USDJPY has been bullish and has swung back into the consolidation area. Price is looking indecisive again. The moving averages are slightly bearish though and price action has formed a slight bearish channel, all suggesting that the USDJPY could move lower.

Opportunities to go short may exist around the moving averages, around the bearish channel resistance area and around the horizontal resistance at 107.95. A bearish move could stall or reverse around the channel support area and around the horizontal support levels at 107.10, 106.90 and 106.80.

The Federal Reserve has announced a record breaking stimulus package, aimed at US households and employers. The US Federal Open Market Committee (FOMC) has unexpectedly cut rates by 150 points due to heightened concerns regarding the COVID-19 outbreak. The current Fed Funds rate is currently 0.25%, back at post-2008 levels. There is some concern that keeping rates low could cause greater issues in the US’ financial sector. The USD has been acting as a safe haven amid the COVID-19 outbreak. There are some concerns that the COVID-19 pandemic may hit the US hardest, causing a reversal of the recent USD strength.

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. COVID-19 recession fears could stunt economic growth though.

A US manufacturing PMI figure will be released at 1400 UTC today.

XAUUSD

XAUUSD 1 Hour Chart

GOLD has been bullish and is starting to look indecisive. The moving averages are currently bullish but overall they have been crossing frequently – confirming the indecision. Price is up-trending on higher time-frames, signalling that GOLD may move higher.

Trading opportunities could exist around the moving averages and around the horizontal levels at 1713, 1724, 1737, 1751 and 1764.

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