TriumphFX Intraday Forex Analysis – 1 Hour Charts – October 23, 2020


AUDUSD

AUDUSD 1 Hour Chart

As suggested in yesterday’s chart analysis, AUDUSD has been finding support around the shorter-term moving average.

Price was showing signs of upside momentum but is now looking indecisive. The moving averages are still bullish though, suggesting a potential bullish move. AUDUSD is ranging between the horizontal levels at 0.7090 and 0.7135.

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 0.7065 and 0.7030. A break to the upside may find resistance around 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

EURGBP has been moving sideways, as suggested in yesterday’s chart analysis.

Price is indecisive. The moving averages confirm the market indecision – they have been crossing frequently. EURGBP is showing some signs of a potential bearish move.

Trading opportunities may exist around any of the key Fib levels, 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.

European PMI figures will be released at 0715 & 0730 UTC today.

EURUSD

EURUSD 1 Hour Chart

As suggested in yesterday’s chart analysis, price has been finding support around the 50.0% Fib level.

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

Buying opportunities could exist around the 50.0% and 61.8% Fib levels and around the horizontal levels at 1.1765, 1.1735, 1.1705 and 1.1695.

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%.

European PMI figures will be released at 0715 & 0730 UTC today.

GBPUSD

GBPUSD 1 Hour Chart

Price has been bearish.

GBPUSD is up-trending and is currently in a retrace phase. The moving averages are bullish and steady, signalling that the uptrend could continue.

Long opportunities may exist around the 50.0% and 61.8% Fib levels, around the trend support area, around the longer-term moving average and around the previous horizontal resistance levels at 1.3040 and 1.3010. A bullish move could find resistance around the shorter-term moving average and 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.

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 reversed around the trend resistance area.

Price is down-trending but is currently looking a little indecisive. The moving averages are tightening and moving sideways, confirming the market indecision.

Selling opportunities could exist around the trend resistance area and around the horizontal resistance levels at 1.3170, 1.3200 and 1.3250. A bearish move may find support around the horizontal support levels at 1.3120 and 1.3090.

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 

The USDCHF has found resistance around the 38.2% Fib level and longer-term moving average, as suggested in yesterday’s chart analysis.

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

Shorting opportunities may exist around the longer-term moving average, around any of the key Fib levels and around the horizontal levels at 0.9085 and 0.9165. A bearish move could be rejected or reverse around the shorter-term moving average and around the recent swing low at 0.9035.

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 is down-trending and is currently in a retrace phase. The moving averages are bearish and widening, signalling that the downtrend may continue. The USDJPY is down-trending on higher time-frames also.

Opportunities to go short could exist around any of the key Fib levels, around the moving averages and around the horizontal levels at 104.90, 105.05 and 105.20. A bearish move may find support around the recent lows at 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

As suggested in yesterday’s chart analysis, price has reversed off the trend support and horizontal support areas.

GOLD is up-trending and is currently in a retrace phase. The current retrace move has been of significant size, suggesting that price could struggle to swing higher. The moving averages are tightening and moving sideways, signalling market indecision.

Buying opportunities may exist around the trend support area and around any of the horizontal support levels at 1896, 1890, 1883 and 1876. A bullish move could stall or reverse around the moving averages and around the horizontal resistance at 1931.

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