TriumphFX Intraday Forex Analysis – 1 Hour Charts – October 22, 2020


AUDUSD

AUDUSD 1 Hour Chart

As suggested in yesterday’s chart analysis, price failed to swing lower.

The AUDUSD has been bullish. Price action has formed a swing higher and the moving averages are crossing bullish, all suggesting that price could start up-trending.

Opportunities to go long may exist around the bullish moving averages and around the horizontal support levels at 0.7065 and 0.7030. A bullish move could be rejected or reverse around the horizontal resistance levels at 0.7130, 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 been bearish.

The EURGBP is now looking indecisive again. The moving averages confirm the lack of trend direction – they are tight and moving sideways. Higher time-frames are showing signs of some upside direction.

Trading opportunities could exist around the moving averages and around the horizontal levels at 0.9015, 0.9030 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.

The Governor of the Bank of England will speak at 0925 UTC today.

EURUSD

As suggested in yesterday’s chart analysis, the EURUSD has reversed around the shorter-term moving average.

Price is up-trending and is currently in a retrace phase. The moving averages are bullish and steady, signalling that the uptrend could continue. The EURUSD is also up-trending on higher time-frames.

Long opportunities may exist around the moving averages, around any of the key Fib levels and around the horizontal levels at 1.1830 and 1.1765. A bullish move could find resistance around 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

The GBPUSD closed above the consolidation resistance area and has since been bullish, as suggested in yesterday’s chart analysis.

Price is up-trending – price action has formed a series of higher swing highs and higher swing lows. The moving averages are bullish and widening, signalling that the uptrend may continue.

Buying opportunities could 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 1.3070, 1.3040 and 1.3010. The GBPUSD may continue to find resistance around the recent highs at 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.

The Governor of the Bank of England will speak at 0925 UTC today.

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