TriumphFX Intraday Forex Analysis – 1 Hour Charts – October 26, 2020


AUDUSD

AUDUSD 1 Hour Chart

As suggested in Friday’s chart analysis, price has been moving sideways.

The AUDUSD is indecisive and is lacking trend momentum. The moving averages are bullish and steady, signalling potential upside.

Trading opportunities may exist around the moving averages and around any of the horizontal levels at 0.7030, 0.7065, 0.7090, 0.7100, 0.7150, 0.7185, 0.7205 and 0.7240.

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 reversed around 0.9110, as suggested in Friday’s chart analysis.

The EURGBP continues to be indecisive. Price is looking very choppy. The moving averages confirm the market indecision – they have been crossing frequently and are moving sideways. The EURGBP is also indecisive on higher time-frames.

Trading opportunities could exist around the moving averages and around the horizontal levels at 0.9015, 0.9110 and 0.9145.

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 that will directly impact this currency pair.

EURUSD

EURUSD 1 Hour Chart

As suggested in Friday’s chart analysis, the EURUSD reversed around the 50.0% Fib level.

Price is now looking indecisive. The moving averages are tight and are moving sideways, confirming the market indecision. The EURUSD is up-trending on higher time-frames, signalling that price could attempt a bullish move higher.

Trading opportunities may exist around the moving averages and around the horizontal levels at 1.1800, 1.1865 and 1.1875.

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

The GBPUSD has reversed around the trend support area and horizontal level at 1.3010, as suggested in Friday’s chart analysis.

Price is up-trending and is currently in a retrace phase. Price action has formed a large bullish channel. The moving averages are tightening and are moving sideways, signalling that the GBPUSD may struggle to swing higher.

Opportunities to go long could exist around the moving averages, around the bullish channel support area and around the horizontal levels at 1.3010 and 1.2925. A bullish move may find resistance around 1.3160.

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

As suggested in Friday’s chart analysis, price found resistance around the trend resistance area.

USDCAD has since been bullish and has swung above the trend resistance area. Price action has formed a short series of higher swing highs and higher swing lows, suggesting that price could start up-trending. The moving averages are tight and moving sideways though, suggesting market indecision.

Long opportunities may exist around the dynamic support of the moving averages, around the previous trend resistance area (as support), around the newly formed trend support area and around the horizontal support levels at 1.3115 and 1.3090. A bullish move could find resistance around 1.3200 and 1.3250.

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

Price reversed around the longer-term moving average and then was bearish, as suggested in Friday’s chart analysis.

USDCHF is now looking indecisive. The moving averages confirm the market indecision – they are tight and moving sideways. Price action has formed a horizontal channel at 0.9035-0.9080 and price is moving within the channel.

Trading opportunities could exist around the support and resistance areas of the channel and if USDCHF moves out of the channel (break-out trade).

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

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

Price is down-trending and is currently in a retrace phase. The moving averages are bearish, suggesting that the downtrend could continue. USDJPY is also down-trending on higher time-frames, adding confidence that the downside direction could continue.

Opportunities to go short may exist around the longer-term moving average and around the horizontal levels at 104.90, 105.05, 105.20 and 105.70. A bearish move could stall or reverse around the diagonal support area and around the horizontal support levels at 104.60 and 104.40.

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

GOLD has been bearish.

Price is looking indecisive again. The moving averages confirm the current indecision – they have been crossing frequently and are moving sideways.

Trading opportunities could exist around the moving averages and around the horizontal levels at 1876, 1883, 1890, 1893, 1913 and 1931.

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