TriumphFX Intraday Forex Analysis – 1 Hour Charts – July 31, 2020


AUDUSD

AUDUSD 1 Hour Chart

AUDUSD has been bullish and has swung higher, as suggested in yesterday’s chart analysis.

Price is clearly up-trending – price action has been forming a series of higher swing highs and higher swing lows. The moving averages are bullish and steady, signalling that the upside direction may continue.

Buying opportunities could exist around the dynamic support of the moving averages, around the support and resistance areas of the previous bullish channel and around the horizontal levels at 0.7190 and 0.7120.

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.

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

EURGBP

EURGBP 1 Hour Chart

As suggested in yesterday’s chart analysis, EURGBP is currently finding resistance around the bearish channel resistance area.

Price has been indecisive but recently has been bearish. EURGBP has formed a bearish channel and the moving averages are bearish and steady, suggesting that price could move lower.

Selling opportunities may exist around the bearish channel resistance area, around the bearish moving averages and around the horizontal resistance levels at 0.9080 and 0.9135. A bearish move could stall or reverse around the bearish channel support area and around the horizontal support levels at 0.9025 and 0.9000.

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

Price has been bullish and has swung higher, as suggested in yesterday’s chart analysis.

EURUSD is up-trending. The moving averages are bullish and steady, signalling that the uptrend may continue. Price is starting to look over-extended on higher time-frames, suggesting that a bearish retrace move may be due.

Long opportunities could exist around the bullish moving averages, around the trend support area and around the horizontal levels at 1.1790 and 1.1700.

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.

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

GBPUSD

GBPUSD 1 Hour Chart

As suggested in yesterday’s chart analysis, price has continued to be bullish and move higher.

GBPUSD is looking very bullish. The moving averages are bullish and steady, suggesting that the upside direction could continue. Price is looking over-extended on higher time-frames, signalling that a bearish retrace move could be due.

Opportunities to go long may exist around the dynamic support of the moving averages, around the support and resistance areas of the previous bullish channel and around the horizontal levels at 1.2950, 1.2895 and 1.2850.

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.

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

USDCAD

USDCAD 1 Hour Chart

The USDCAD has been quiet and is currently moving sideways.

Price was down-trending but price action recently formed a higher swing high, suggesting that the USDCAD may start up-trending. The moving averages confirm the potential upside – they have crossed bullish.

Buying opportunities could exist around the dynamic support of the moving averages and around the horizontal levels at 1.3405 and 1.3335. An attempt to swing higher may be rejected or reverse around any of the horizontal levels at 1.3450, 1.3475 and 1.3500.

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 Canadian GDP figure will be released at 1230 UTC today.

USDCHF 

USDCHF 1 Hour Chart

As suggested in yesterday’s chart analysis, the USDCHF has reversed around the shorter-term moving average and has swung lower.

Price is clearly down-trending. Price action has formed a tight bearish channel and the moving averages are bearish and steady, suggesting that the USDCHF could continue to trend lower.

Shorting opportunities may exist around the bearish channel resistance area, around the dynamic resistance of the moving averages and around the horizontal levels at 0.9145 and 0.9225. The USDCHF could reverse off the bearish channel support area.

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.

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

USDJPY

USDJPY 1 Hour Chart

Price has swung lower, as suggested in yesterday’s chart analysis.

The USDJPY is down-trending. The moving averages are bearish and steady, signalling that the downtrend may continue.

Opportunities to go short could exist around the bearish moving averages, around the trend resistance area and around the horizontal levels at 104.80, 105.25 and 105.60.

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.

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

XAUUSD

XAUUSD 1 Hour Chart

As suggested in yesterday’s chart analysis, GOLD reversed around the longer-term moving average.

Price has been up-trending but is currently consolidating. The moving averages are bullish and steady, signalling that the uptrend could continue.

Trading opportunities may exist around the moving averages and around the identified horizontal levels at 1913, 1944 and 1971. If GOLD closes above 1971, price could attempt a bullish move higher.

Start trading today with Triumph’s Forex MT4 trading platform – https://www.tfxi.com/