TriumphFX Intraday Forex Analysis – 1 Hour Charts – August 23, 2019

AUDUSD – 1 Hour Chart

As suggested in yesterday’s chart analysis, the AUDUSD has been finding support around the range support area. Price continues to be indecisive and range between 0.6740 and 0.6815. The moving averages are tight and crossing frequently – confirming the market indecision.

Trading opportunities could exist around the support and resistance areas of the range and if the AUDUSD closes out of the range (break-out trade). A break to the downside may find support around the recent lows at 0.6695.

The Reserve Bank of Australia (RBA) has cut rates by 0.25% to 1.00% (a record low). The Australian economy continues to grow at a steady pace and produce positive economic indicators under low interest rates. The US Federal Open Market Committee (FOMC) has cut rates by 25 points due to heightened concerns regarding the economy and ongoing trade tensions with China. The current Fed Funds rate is 2.25%.

The Chair of the Federal Reserve will speak at 1400 UTC today.

EURGBP – 1 Hour Chart

EURGBP moved below the range support area and has since been bearish (as suggested in yesterday’s chart analysis). Price action is forming a swing lower – EURGBP is down-trending again. The moving averages are bearish and widening, signalling that the downtrend could continue.

Selling opportunities may exist around the dynamic resistance of the moving averages, around the trend resistance area and around the horizontal levels at 0.9100, 0.9115 and 0.7180. Price could continue to find support around 0.9040.

Recent economic indicators for the UK have shown a slowdown in the British economy. The Bank of England (BOE) continues to hold interest rates at 0.75% – 50 base points higher than the 2016 & 2017 low of 0.25%. Brexit continues to add uncertainty to the UK economy, holding back any rate hikes and driving down the Pound. The European Central Bank (ECB) have cut economic forecasts, some economists predicting that Europe is heading for recession. The official rate continues to be at the record low of 0.00%. This is likely to stay unchanged until the 2nd quarter of 2020.

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

EURUSD – 1 Hour Chart

Price has been bearish. The EURUSD has moved below the recent horizontal channel and the moving averages are becoming bearish, all suggesting that price may attempt a move lower. Price action has formed a bearish channel.

Shorting opportunities could exist around the moving averages, around the bearish channel resistance area and around the horizontal levels at 1.1070 and 1.1110. A bearish move may be rejected or reverse around the bearish channel support area and around the recent lows at 1.1030.

The European Central Bank (ECB) have cut economic forecasts, some economists predicting that Europe is heading for recession. The official rate continues to be at the record low of 0.00%. This is likely to stay unchanged until the 2nd quarter of 2020. The US Federal Open Market Committee (FOMC) has cut rates by 25 points due to heightened concerns regarding the economy and ongoing trade tensions with China. The current Fed Funds rate is 2.25%.

The Chair of the Federal Reserve will speak at 1400 UTC today.

GBPUSD – 1 Hour Chart

As suggested in yesterday’s chart analysis, price moved above the range resistance area and has since been bullish. GBPUSD has swung above the recent consolidation area and has formed a bullish channel, all signalling that price could start up-trending. The moving averages are bullish and widening – confirming the potential upside momentum.

Buying opportunities may exist around the dynamic support of the moving averages, around the channel support area and around the horizontal levels at 1.2205, 1.2170, 1.2120 and 1.2075. A bullish move could stall or reverse around the recent swing high at 1.2255 and around the channel resistance area.

Recent economic indicators for the UK have shown a slowdown in the British economy. The Bank of England (BOE) continues to hold interest rates at 0.75% – 50 base points higher than the 2016 & 2017 low of 0.25%. Brexit continues to add uncertainty to the UK economy, holding back any rate hikes and driving down the Pound. The US Federal Open Market Committee (FOMC) has cut rates by 25 points due to heightened concerns regarding the economy and ongoing trade tensions with China. The current Fed Funds rate is 2.25%.

The Chair of the Federal Reserve will speak at 1400 UTC today.

NZDUSD – 1 Hour Chart

The NZDUSD is currently finding resistance around the shorter-term moving average and the previous horizontal support at 0.6395 (as suggested in yesterday’s chart analysis). Price continues to downtrend and be bearish. The moving averages are bearish and widening, signalling that the downtrend may continue.

Opportunities to go short could exist around the bearish moving averages, around the trend resistance area and around the horizontal levels at 0.6395, 0.6425, 0.6450 and 0.6465. A bearish move may find support around the recent lows at 0.6360.

The Reserve Bank of New Zealand (RBNZ) continue to keep the official interest rate at the record low of 1.50%. The RBNZ have announced that the rate is likely to stay the same throughout 2019 but recent economic data for New Zealand has been poorer than expected. The US Federal Open Market Committee (FOMC) has cut rates by 25 points due to heightened concerns regarding the economy and ongoing trade tensions with China. The current Fed Funds rate is 2.25%.

The Chair of the Federal Reserve will speak at 1400 UTC today.

USDCAD – 1 Hour Chart

As suggested in yesterday’s chart analysis, USDCAD has reversed around the diagonal support area. Price continues to be choppy and indecisive. The moving averages confirm the indecision – they have been crossing frequently and are moving sideways. USDCAD has formed a horizontal channel at 1.3255-1.3340.

Trading opportunities may exist around the support and resistance areas of the channel and if price closes out of the channel (break-out trade). Trading opportunities may also exist around the diagonal support area.

The US Federal Open Market Committee (FOMC) has cut rates by 25 points due to heightened concerns regarding the economy and ongoing trade tensions with China. The current Fed Funds rate is 2.25%. The Bank of Canada (BOC) continues to raise interest rates at a steady pace. The current rate is 1.75% – it’s highest since December 2008. Further rate hikes are expected. Oil price fluctuations may impact the Canadian economy and economic outlook.

A Canadian retail sales figure will be announced at 1230 UTC today. The Chair of the Federal Reserve will speak at 1400 UTC.

USDCHF – 1 Hour Chart

Price has reversed around the previous channel resistance area and has been bullish (as suggested in yesterday’s chart analysis). The USDCHF is up-trending within a bullish channel. The moving averages are bullish and widening, signalling that the upside momentum may continue.

Long opportunities could exist around the channel support area, around the moving averages and around the horizontal levels at 0.9815 and 0.9770. Price may find resistance around the channel resistance area.

The US Federal Open Market Committee (FOMC) has cut rates by 25 points due to heightened concerns regarding the economy and ongoing trade tensions with China. The current Fed Funds rate is 2.25%. The Swiss National Bank (SNB) continues to keep rates at the all-time low of -0.75%. The Swiss economy was stagnant throughout late 2018 but has been showing signs of positive momentum so far in 2019. The Swiss Franc continues to be highly valued, especially due to the current global uncertainties around Brexit and the US. The SNB has announced that it will continue to intervene with in foreign exchange markets.

The Chair of the Federal Reserve will speak at 1400 UTC today.

USDJPY – 1 Hour Chart

As suggested in yesterday’s chart analysis, price continues to find resistance around the range resistance area. The USDJPY continues to be indecisive and range between 105.10-106.75. The moving averages are tight and moving sideways – confirming the market indecision.

Trading opportunities may exist around the range support and resistance areas and if price moves out of the range (break-out trade).

The US Federal Open Market Committee (FOMC) has cut rates by 25 points due to heightened concerns regarding the economy and ongoing trade tensions with China. The current Fed Funds rate is 2.25%. The Bank of Japan (BOJ) continues to keep interest rates at the record low of -0.10%. The Japanese economy was under-performing in 2018 but is currently seeing signs of moderate expansion.

The Chair of the Federal Reserve will speak at 1400 UTC today.

XAUUSD – 1 Hour Chart