TriumphFX Intraday Forex Analysis – 1 Hour Charts – August 05, 2020


AUDUSD

AUDUSD 1 Hour Chart

Price has been bullish.

The AUDUSD has been bullish but continues to look indecisive. The moving averages confirm the market indecision – they have been crossing frequently and are moving sideways.

Trading opportunities could exist around the moving averages and around the horizontal levels at 0.7025, 0.7065, 0.7080 and 0.7220.

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 non-manufacturing PMI figure will be announced at 1400 UTC today.

EURGBP

EURGBP 1 Hour Chart

Price has been bullish.

The EURGBP broke above the tight range resistance area and is now looking indecisive again. Price was down-trending but is currently in a indecisive retrace move. The moving averages are tightening and beginning to move sideways – confirming the market indecision. The EURGBP is down-trending on higher time-frames, suggesting that the downtrend could continue.

Trading opportunities may exist around the moving averages and around the horizontal levels at 0.8985, 0.9030, 0.9060 and 0.9080.

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 yesterday’s chart analysis, the EURUSD has become indecisive.

Price is moving sideways. The moving averages confirm the market indecision – they are tight and moving sideways.

Trading opportunities could exist around the moving averages and around the horizontal levels at 1.1540, 1.1700 and 1.1900.

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 non-manufacturing PMI figure will be announced at 1400 UTC today.

GBPUSD

GBPUSD 1 Hour Chart

The GBPUSD is struggling to swing higher and has become indecisive, as suggested in yesterday’s chart analysis.

Price is looking indecisive. The moving averages are tight and moving sideways – confirming the current indecision. The GBPUSD could start ranging between 1.2985 and 1.3160.

Trading opportunities may exist around the moving averages, around the previous support of the previous bullish channel and around the horizontal levels at 1.2985 and 1.3160.

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 non-manufacturing PMI figure will be announced at 1400 UTC today.

USDCAD

USDCAD 1 Hour Chart

As suggested in yesterday’s chart analysis, price closed below the horizontal channel support area and has since been bearish.

USDCAD is now down-trending again. Price action is forming a potential large bearish channel. The moving averages have crossed bearish and are widening, signalling that the trend may continue.

Opportunities to go short could exist around the dynamic resistance of the moving averages, around the bearish channel resistance area and around the horizontal levels at 1.3335 and 1.3450. A strong bearish move may find support around the bearish channel support area.

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 non-manufacturing PMI figure will be announced at 1400 UTC today.

USDCHF 

USDCHF 1 Hour Chart

Price found support around the longer-term moving average, as suggested in yesterday’s chart analysis.

USDCHF has since swung lower. Price is now looking indecisive. The moving averages are tight and moving sideways – confirming the market indecision. USDCHF could start ranging between the horizontal levels at 0.9060 and 0.9225.

Trading opportunities may exist around the moving averages and around the horizontal levels at 0.9060 and 0.9225.

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 non-manufacturing PMI figure will be announced at 1400 UTC today.

USDJPY

USDJPY 1 Hour Chart

As suggested in yesterday’s chart analysis, USDJPY is currently finding support around the longer-term moving average.

Price has become indecisive and is lacking trend momentum. The moving averages are tightening and beginning to move sideways – confirming the market indecision.

Trading opportunities could exist around the moving averages and around the horizontal levels at 104.25, 104.80, 105.25, 106.35, 106.70 and 107.25.

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 non-manufacturing PMI figure will be announced at 1400 UTC today.

XAUUSD

XAUUSD 1 Hour Chart

GOLD closed above 1983 and has since been bullish, as suggested in yesterday’s chart analysis.

Price is clearly up-trending. Price action has formed a potential bullish channel and the moving averages are bullish and steady, suggesting that the upside momentum could continue.

Opportunities to go long may exist around the bullish moving averages, around the bullish channel support area and around the horizontal levels at 1983 and 1944. A bullish move could be rejected or reverse around the channel resistance area.

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