TriumphFX Forex Analysis – EUR Pairs – October, November & December 2020
EURCHF – Daily and 4 Hour Charts
As suggested in our last Forex EUR analysis, price reversed around the daily moving average and then formed a bullish move.
The EURCHF is now looking indecisive on the daily time-frame. Price action has formed a tight horizontal channel at 1.0735-1.0845. The daily moving averages are tight and moving sideways – confirming the market indecision.
The 4 hour time-frame shows a clear sideways consolidation. The moving averages confirm the current indecision – they are tight and moving sideways.
Trading opportunities may exist around the support and resistance areas of the horizontal channel channel and if the EURCHF moves out of the channel (break-out trade). A break to the upside could find resistance around 1.0875 and 1.1055. A break to the downside could find support around the daily moving averages and around the horizontal support levels at 1.0615 and 1.0500.
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 European Central Bank (ECB) has recently become more optimistic about the Eurozone’s economic future. Strong economic stimulus and low interest rates will need to remain to support growth and inflation though. The interest rate continues to be at the record low of 0.00%.
EURGBP – Daily and 4 Hour Charts
Price has been bullish.
On the daily time-frame, EURGBP is up-trending within a large consolidation. Price action has formed a bullish channel and the moving averages are bullish and steady, suggesting that the uptrend may continue. EURGBP is moving within a consolidation area though (0.8295-0.9425), signalling that price may suddenly become bearish.
On the 4 hour time-frame, EURGBP is down-trending within a bearish channel. The moving averages are bullish and widening.
Buying opportunities could exist around the daily and 4 hourly moving averages, around the daily bullish channel support area and around the horizontal levels at 0.8970, 0.8870, 0.8680, 0.8575 and 0.8295. A bullish move may be rejected or reverse around the 4 hour bearish channel resistance area, around the daily bullish channel resistance area and around the horizontal levels at 0.9210, 0.9260 and 0.9425.
The European Central Bank (ECB) has recently become more optimistic about the Eurozone’s economic future. Strong economic stimulus and low interest rates will need to remain to support growth and inflation though. The interest rate continues to be at the record low of 0.00%.
The Bank of England (BOE) has set the interest rate at a record low of 0.10%. Policymakers believe that the UK will take longer to recover from the COVID-19 economic crisis than first initially thought. They have warned about cutting rates below 0.00%, meaning that a negative rate is unlikely in the near future.
EURJPY – Daily and 4 Hour Charts
EURJPY has been bullish.
Price has formed a large bullish move on the daily chart and is currently in a retrace phase. EURJPY has formed higher swing highs and lows, signalling an uptrend. Price is looking a little indecisive though. The moving averages confirm this – they have crossed bullish but are moving sideways.
The EURJPY is down-trending on the 4 hour chart. The 4 hour moving averages are bearish and widening, suggesting that price could move lower.
Trading opportunities may exist around the 4 hour trend resistance area, around the daily and 4 hourly moving averages and around the horizontal levels at 119.30, 122.50, 124.10 and 126.55.
The European Central Bank (ECB) has recently become more optimistic about the Eurozone’s economic future. Strong economic stimulus and low interest rates will need to remain to support growth and inflation though. The interest rate continues to be at the record low of 0.00%.
The Bank of Japan (BOJ) continues to keep interest rates at the record low of -0.10%. The Japanese economy is performing well under the current COVID-19 economic crisis.
EURUSD – Daily and 4 Hour Charts
As suggested in our last EUR chart analysis, price closed above the range resistance area and has since been bullish.
The daily time-frame is showing a clear uptrend. Price is currently in a retrace phase. The daily moving averages are bullish and widening, signalling that the uptrend may continue.
On the 4 hourly time-frame, price is down-trending. EURUSD is moving within a bearish channel and the moving averages have crossed bearish, all suggesting that price may move lower before attempting another bullish move.
Opportunities to go long could exist around the daily moving averages, around any of the key Fib levels and around any of the horizontal levels at 1.1615, 1.1400 and 1.1170. A bullish move may stall or reverse around the 4 hour bearish channel resistance area and around the horizontal resistance levels at 1.1890 and 1.1945.
The Federal Reserve have suggested that rates may remain low for the short-term future. Rates currently remain at the low of 0.25%. Inflation is around target and the US job market continues to be robust.
The European Central Bank (ECB) has recently become more optimistic about the Eurozone’s economic future. Strong economic stimulus and low interest rates will need to remain to support growth and inflation though. The interest rate continues to be at the record low of 0.00%.
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