TriumphFX Intraday Forex Analysis – 1 Hour Charts – October 20, 2020


AUDUSD

AUDUSD 1 Hour Chart

As suggested in yesterday’s chart analysis, price has been bearish and has swung lower.

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

Opportunities to go short may exist around the bearish moving averages, around the trend resistance area and around the horizontal levels at 0.7065 and 0.7110.

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.

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

EURGBP

EURGBP 1 Hour Chart

Price has been bullish.

The EURGBP has swung above the recent bearish channel resistance area and is forming a higher swing high, suggesting that the recent downtrend is over. The moving averages confirm this – they are bullish and steady. Price action has formed a bullish channel.

Opportunities to go long could exist around the previous bearish channel resistance area (as support), around the dynamic support of the moving averages, around the bullish channel support area and around the horizontal levels at 0.9090, 0.9025 and 0.9015. A bullish move may be rejected or reverse around the channel resistance area and around the horizontal resistance levels at 0.9120 and 0.9155.

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

The EURUSD has been bullish.

Price action has formed a short series of higher swing highs and lows and the moving averages have crossed bullish, all suggesting that price could start up-trending.

Long opportunities may exist around any of the key Fib levels, around the dynamic support of the moving averages, around the trend support area and around the horizontal levels at 1.1760, 1.1735 and 1.1705. A bullish move could find resistance around 1.1830.

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 that will directly impact this currency pair.

GBPUSD

GBPUSD 1 Hour Chart

As suggested in yesterday’s chart analysis, the GBPUSD is indecisive.

Price has been moving sideways. The moving averages confirm the market indecision – they have been crossing frequently and are moving sideways. The GBPUSD is ranging between 1.2865 and 1.3070.

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

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 that will directly impact this currency pair.

USDCAD

USDCAD 1 Hour Chart

Price has failed to swing lower, as suggested in yesterday’s chart analysis.

USDCAD was down-trending but is now looking indecisive. The moving averages are tight and moving sideways – confirming the market indecision. Price is up-trending on higher time-frames, suggesting that USDCAD could attempt a bullish move.

Trading opportunities may exist around the moving averages and around the horizontal levels at 1.3105, 1.3155, 1.3250 and 1.3335.

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.

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

USDCHF 

USDCHF 1 Hour Chart

As suggested in yesterday’s chart analysis, USDCHF found support around 0.9085.

Price has broken below the recent consolidation area but continues to look indecisive. The moving averages confirm the current indecision – they have been crossing frequently. USDCHF is now ranging between the recent lows at 0.9085 and the horizontal resistance at 0.9165.

Trading opportunities could exist around the support and resistance areas of the range and if price moves out of the range (break-out trade). A break to the upside may find resistance around 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 that will directly impact this currency pair.

USDJPY

USDJPY 1 Hour Chart

USDJPY has found resistance around 105.60, as suggested in yesterday’s chart analysis.

Price is up-trending but still looking choppy. The moving averages are becoming bullish and price action has formed a bullish channel, signalling that the upside could continue.

Buying opportunities may exist around the bullish channel support area, around the moving averages and around the horizontal levels at 105.45, 105.20 and 105.05. A bullish move could be rejected or reverse around the channel resistance area and around the horizontal levels at 105.60, 105.80 and 106.05.

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 that will directly impact this currency pair.

XAUUSD

XAUUSD 1 Hour Chart

As suggested in yesterday’s chart analysis, GOLD reversed around the horizontal channel resistance area.

Price continues to be indecisive and lack trend direction. The moving averages confirm the market indecision – they have been crossing frequently and are moving sideways. GOLD is moving within a horizontal channel at 1890-1913.

Trading opportunities could exist around the support and resistance areas of the channel and if price moves out of the channel (break-out trade). A break to the upside may find resistance around 1931. A break to the downside may find support around 1883, 1876 and 1852.

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