TriumphFX Intraday Forex Analysis – 1 Hour Charts – August 28, 2020


AUDUSD

AUDUSD 1 Hour Chart

As suggested in yesterday’s chart analysis, price has been bullish and is now reversing around the bullish channel resistance area.

The AUDUSD is up-trending within a large bullish channel. The moving averages are bullish and steady, suggesting that the trend could continue.

Opportunities to go long may exist around the dynamic support of the moving averages, around the identified diagonal areas and around the previous horizontal resistance levels at 0.7270 and 0.7210. Price could continue to find resistance around the bullish 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.

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

EURGBP

EURGBP 1 Hour Chart

Price has reversed around the 38.2% Fib level, as suggested in yesterday’s chart analysis.

The EURGBP is down-trending and is currently in a retrace phase. The moving averages are bearish and widening, signalling that the downside momentum may continue.

Opportunities to go short could exist around the dynamic resistance of the moving averages, around any of the key Fib levels and around the trend resistance area. An attempt to swing lower may stall or reverse around the recent lows at 0.8935.

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.

The Governor of the BOE will speak at 1305 UTC today.

EURUSD

EURUSD 1 Hour Chart

As suggested in yesterday’s chart analysis, the EURUSD closed above the horizontal channel resistance area and has since been bullish.

Price is above the recent consolidation area and the moving averages are becoming bullish, all suggesting that the EURUSD could start up-trending.

Long opportunities may exist around the bullish moving averages, around the diagonal support area and around the horizontal levels at 1.1880, 1.1845 and 1.1785. A bullish move could be rejected or reverse around the recent highs at 1.1955.

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

The GBPUSD was rejected around 1.3255, as suggested in yesterday’s chart analysis.

Price has since swung higher and has moved above the consolidation area, signalling that the GBPUSD may attempt to start up-trending. The moving averages confirm this – they are bullish and steady. Price action has formed a bullish channel and is currently finding resistance around the channel resistance area.

Buying opportunities could exist around the bullish channel support area, around the dynamic support of the moving averages and around the horizontal levels at 1.3255, 1.3230 and 1.3180. The GBPUSD may continue to find resistance or even reverse around the bullish channel resistance.

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.

The Governor of the BOE will speak at 1305 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 below the recent consolidation area and is bearish, suggesting that price could start down-trending. The moving averages confirm the potential downside – they are bearish and widening. Price action has formed a tight bearish channel.

Shorting opportunities may exist around the bearish channel resistance area, around the bearish moving averages and around the horizontal levels at 1.3140, 1.3235 and 1.3265. USDCAD could stall or reverse around the tight 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.

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

USDCHF 

USDCHF 1 Hour Chart

Price has been bearish and has moved lower, as suggested in yesterday’s chart analysis.

USDCHF is down-trending within a large bearish channel. The moving averages are bearish and steady, signalling that the downtrend may continue.

Selling opportunities could exist around the moving averages, around the support and resistance areas of the previous bearish channel and around any of the horizontal levels at 0.9060, 0.9070, 0.9110, 0.9120, 0.9135 and 0.9150. A bearish move may find support around 0.9015 and around the large 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

As suggested in yesterday’s chart analysis, USDJPY has reversed around 106.95.

Price has been very bearish but is still looking indecisive and moving within a large consolidation area. The moving averages confirm the market indecision – they are tight and moving sideways.

Trading opportunities may exist around the moving averages and around any of the horizontal levels at 105.15, 105.50, 105.70 and 105.85.

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

GOLD has continued to reverse around the support and resistance areas of the range, as suggested in yesterday’s chart analysis.

Price has recently closed above the range resistance area, signalling that GOLD may attempt a bullish move.

Buying opportunities could exist around the moving averages, around the previous range resistance area at 1954 and around the horizontal support levels at 1908 and 1879. A bullish move may be rejected or reverse around the horizontal resistance levels at 2014, 2047 and 2070.

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