TriumphFX Intraday Forex Analysis – 1 Hour Charts – October 08, 2020


AUDUSD

AUDUSD 1 Hour Chart

The AUDUSD is down-trending – price action has formed a series of lower swing highs and lower swing lows. Price is moving within a bearish channel. The moving averages are bearish and steady, signalling that the downtrend could continue.

Selling opportunities may exist around the bearish channel resistance area and around the horizontal levels at 0.7205 and 0.7260. A bearish move could be rejected or reverse around the moving averages, around the bearish channel support area and around the horizontal support levels at 0.7100 and 0.7010.

The Reserve Bank of Australia (RBA) have kept rates at 0.25% (a record low). Policymakers are now focused on economic recovery created by the COVID-19 crisis. The board believe they recovery will be both uneven and bumpy. Low rates and economic stimulus is likely to continue until unemployment levels and other economic indicators are more satisfactory.

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 RBA will release a financial stability review at 0030 UTC.

EURGBP

EURGBP 1 Hour Chart

EURGBP is looking choppy and indecisive. Price has been moving sideways and has formed a range around 0.9035-0.9155. The moving averages have been crossing frequently and are moving sideways – confirming the market indecision.

Trading opportunities could exist around the support and resistance areas of the range and if EURGBP moves out of the range (break-out trade). A break to the upside may find resistance around 0.9210.

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.

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

EURUSD

EURUSD 1 Hour Chart

Price is up-trending within a bullish channel. Price is currently struggling to swing higher and the moving averages are tightening and moving sideways, suggesting that the uptrend could becoming to an end. The EURUSD could start ranging between 1.1725 and 1.1795.

Buying opportunities may exist around the moving averages, around the bullish channel support area and around the horizontal support levels at 1.1725, 1.1695 and 1.1680. A bullish move could be rejected or reverse around the channel resistance area and around the horizontal levels at 1.1795, 1.1830 and 1.1865.

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%.

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

GBPUSD

GBPUSD 1 Hour Chart

Price was up-trending but is now looking indecisive. The moving averages confirm the market indecision – they are tight and moving sideways. The GBPUSD may start ranging between 1.2865 and 1.3005.

Trading opportunities could exist around the support and resistance areas of the range and if price closes out of the range (break-out trade). A break to the downside may find support around 1.2815 and 1.2785.

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 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.

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

USDCAD

USDCAD 1 Hour Chart

USDCAD had been moving sideways but recent price action has been bearish. Price is below the recent consolidation area and the moving averages are becoming bearish, all suggesting that USDCAD could start down-trending.

Shorting opportunities may exist around the dynamic resistance of the moving averages and around any of the horizontal levels at 1.3250, 1.3335 and 1.3355. A bearish move could find support around 1.3145.

The Bank of Canada (BOC) continues to keep rates at the low of 0.25%. Policymakers have announced that there are signs of some recovery after the economic crisis caused by COVID-19 but the BOC will continue their quantitative easing program. The BOC are expecting to see economic growth from 2021 onward.

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 Governor of the Bank of Canada will speak at 1230 UTC today.

USDCHF 

USDCHF 1 Hour Chart

USDCHF was down-trending within a bearish channel, price is currently moving above the channel resistance though – suggesting that downside momentum is weakening. The moving averages are tightening and moving sideways, signalling indecision. USDCHF may start ranging.

Trading opportunities could exist around the support and resistance areas of the bearish channel and around the horizontal levels at 0.9135, 0.9185, 0.9210 and 0.9240.

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 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.

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

USDJPY

USDJPY 1 Hour Chart

Price is up-trending. USDJPY has formed a bullish channel and the moving averages are bullish and widening, all signalling that the upside momentum could continue.

Long opportunities may exist around the bullish channel support area, around the dynamic support of the moving averages and around the horizontal levels at 105.80 and 105.55. A bullish move could stall or reverse around the bullish channel resistance area.

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 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.

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

XAUUSD

XAUUSD 1 Hour Chart

Price has been bearish. GOLD has formed a lower swing low and has swung below the recent trend support area, signalling that price could start down-trending. The moving averages have crossed bearish, confirming the potential downside.

Opportunities to go short may exist around the dynamic resistance of the moving averages, around the previous trend support area and around the horizontal resistance at 1918. A bearish move could find support around 1876 and 1851.

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