TriumphFX Intraday Forex Analysis – 1 Hour Charts – October 21, 2020


AUDUSD

AUDUSD 1 Hour Chart

As suggested in yesterday’s chart analysis, AUDUSD found resistance around the shorter-term moving average.

Price has since been bullish. AUDUSD is down-trending and is currently in a retrace move. The moving averages are bearish and steady, suggesting that the downtrend may continue. Price is above the move averages though, signalling that AUDUSD may find support as it tries to swing lower.

Selling opportunities could exist around the horizontal resistance at 0.7110. A bearish move may stall or reverse around the moving averages and around the horizontal levels at 0.7065 and 0.7030.

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

EURGBP reversed around 0.9090 and has been bullish, as suggested in yesterday’s chart analysis.

Price action is forming a higher swing high and the moving averages are bullish and steady, signalling an uptrend. EURGBP is also up-trending on higher time-frames.

Buying opportunities may exist around the previous bullish channel resistance area (as support), around the dynamic support of the moving averages and around the previous horizontal resistance at 0.9090. A bullish move could find resistance around 0.9145 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

As suggested in yesterday’s chart analysis, price has been bullish and is swinging higher.

EURUSD is up-trending. The moving averages are bullish and widening, signalling that the uptrend may continue. Price is also up-trending on higher time-frames.

Long opportunities could exist around the bullish moving averages and around the horizontal levels at 1.1830 and 1.1765.

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

Price continues to move sideways, as suggested in yesterday’s chart analysis.

GBPUSD continues to be indecisive and lack trend direction. The moving averages confirm the market indecision – they are tight and moving sideways. Price action has formed a tightening triangular consolidation pattern.

Trading opportunities may exist around the support and resistance areas of the consolidation pattern and if GBPUSD moves out of the pattern (break-out trade). A break to the upside could find resistance around 1.3010, 1.3040 and 1.3070. A break to the downside could find support around 1.2885, 1.2865 and 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

As suggested in yesterday’s chart analysis, the USDCAD found support around 1.3105.

Price is now down-trending again – price action has formed lower swing highs and lower swing lows. The moving averages have crossed bearish, suggesting that the downtrend may continue.

Shorting opportunities could exist around the bearish moving averages, around the trend resistance area and around the horizontal levels at 1.3105, 1.3155 and 1.3200.

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.

A Canadian CPI figure will be released at 1230 UTC today.

USDCHF 

USDCHF 1 Hour Chart

The USDCHF closed below the range support area and has since been bearish, as suggested in yesterday’s chart analysis.

Price is below the recent range and the moving averages are bearish and widening, all suggesting that the USDCHF could start down-trending.

Opportunities to go short may exist around the moving averages and around the horizontal levels at 0.9085 and 0.9165.

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

Price has been bearish.

The USDJPY is looking indecisive again. The moving averages are tight and moving sideways, confirming the indecision.

Trading opportunities could exist around the moving averages and around the horizontal levels at 105.05, 105.20 and 105.70.

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

Price reversed around the horizonal channel support and resistance area, as suggested in yesterday’s chart analysis.

GOLD has since swung above the horizontal channel resistance area. Price action has formed a bullish channel and the moving averages are bullish and steady, signalling that GOLD could start up-trending.

Buying opportunities may exist around the dynamic support of the moving averages, around the bullish channel support area and around the horizontal levels at 1913, 1896, 1890 and 1883. A bullish move could be rejected or reverse around the channel resistance area and around the recent highs at 1931.

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