TriumphFX Intraday Forex Analysis – 1 Hour Charts – June 03, 2020


AUDUSD

AUDUSD 1 Hour Chart

As suggested in yesterday’s chart analysis, price has continued to be bullish and move higher. AUDUSD is clearly up-trending and has been bullish. The moving averages are bullish and steady, signalling that the uptrend may continue. Price is looking over-extended on higher time-frames, suggesting that a retrace move may be due.

Buying opportunities could exist around the dynamic support of the moving averages, around any of the key Fib levels and around the trend support area. AUDUSD may continue to find resistance around 0.6950.

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 ADP non-farm employment change figure will be released at 1215 UTC today. This is followed by US non-manufacturing PMI at 1400 UTC.

EURGBP

EURGBP 1 Hour Chart

Price has been moving sideways and continues to be indecisive (as suggested in yesterday’s chart analysis). The moving averages confirm the market indecision – they have been crossing frequently.

Trading opportunities may exist around the moving averages and around the identified horizontal levels at 0.8815, 0.8830, 0.8865 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.

A UK services PMI figure will be announced at 0830 UTC today.

EURUSD

EURUSD 1 Hour Chart

As suggested in yesterday’s chart analysis, EURUSD has continued to bullish and move higher. Price is up-trending within a bullish channel. The moving averages are bullish and steady, signalling that the upside direction may continue.

Long opportunities could exist around the bullish channel support area, around the dynamic support of the moving averages and around the horizontal levels at 1.1145 and 1.1090. A bullish move may 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 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 ADP non-farm employment change figure will be released at 1215 UTC today. This is followed by US non-manufacturing PMI at 1400 UTC.

GBPUSD

GBPUSD 1 Hour Chart

GBPUSD has continued to be bullish and move higher (as suggested in yesterday’s chart analysis). Price is up-trending. The moving averages are bullish and widening, signalling that the uptrend could continue. GBPUSD is currently struggling to close higher, suggesting that a retrace move could form.

Opportunities to go long may exist around the bullish moving averages, around the previous bullish channel resistance area (as support) and around the trend support 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 UK services PMI figure will be announced at 0830 UTC today. A US ADP non-farm employment change figure will be released at 1215 UTC. This is followed by US non-manufacturing PMI at 1400 UTC.

USDCAD

USDCAD 1 Hour Chart

Price continues to be in a downtrend. The moving averages are bearish and widening, signalling that the downtrend may continue. The USDCAD has been finding support around 1.3485, suggesting that price may attempt a retrace move.

Selling opportunities could exist around the dynamic resistance of the moving averages, around the trend resistance area, around any of the key Fib levels and around the previous horizontal support at 1.3735. A bearish move may stall or reverse around the current support area at 1.3485.

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 ADP non-farm employment change figure will be released at 1215 UTC today. This is followed by US non-manufacturing PMI at 1400 UTC. The BOC will release at rate statement and rates at 1400 UTC.

USDCHF 

USDCHF 1 Hour Chart

Price has been down-trending but is starting to become indecisive and move sideways. The moving averages confirm the market indecision – they are tight and moving sideways.

Trading opportunities may exist around the moving averages, around the trend resistance area and around any of the horizontal levels at 0.9580, 0.9625, 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 ADP non-farm employment change figure will be released at 1215 UTC today. This is followed by US non-manufacturing PMI at 1400 UTC.

USDJPY

USDJPY 1 Hour Chart

The USDJPY has been bullish and has swung higher. Price is above the recent consolidation area and the moving averages are bullish and widening, all signalling that the USDJPY may start up-trending.

Buying opportunities could exist around any of the key Fib levels, around the bullish moving averages and around the previous consolidation resistance area at 107.95.

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 ADP non-farm employment change figure will be released at 1215 UTC today. This is followed by US non-manufacturing PMI at 1400 UTC.

XAUUSD

XAUUSD 1 Hour Chart

As suggested in yesterday’s chart analysis, GOLD reversed around the horizontal level at 1743. Price continues to be indecisive and lack trend momentum. The moving averages confirm the market indecision – they have been crossing frequently and are moving sideways.

Trading opportunities may exist around the moving averages and around the horizontal levels at 1696, 1713, 1745, 1751 and 1764.

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