TriumphFX Intraday Forex Analysis – 1 Hour Charts – January 08, 2020

AUDUSD – 1 Hour Chart

As suggested in yesterday’s chart analysis, price has continued to be bearish and move lower. The moving averages are bearish and steady, signalling that the downside direction could continue.

Selling opportunities may exist around the dynamic resistance of the moving averages, around any of the key Fib levels and around the horizontal levels at 0.6895 and 0.6925. A bearish move could find support around 0.6960 and 0.6840.

The Reserve Bank of Australia (RBA) has cut rates again by 0.25% to 0.75% (a record low). The current low rate is needed to help reduce the unemployment rate and stimulate economy . It is likely that official rate will stay low and may even be cut further. The US Federal Open Market Committee (FOMC) has cut rates by a further 25 points due to heightened concerns regarding the economy. The current Fed Funds rate is currently 1.75%. The current monetary plan is to keep the rate unchanged for the foreseeable future. There is some concern that keeping rates low could cause greater issues in the US’ financial sector.

US ADP non-farm employment change is at 1315 UTC today. This is followed by a speech from US President Trump in response to Iran’s missiles. A Australian trade balance figure will be released at 0030 UTC.

EURGBP – 1 Hour Chart

Price has swung lower and is bearish (as suggested in yesterday’s chart analysis). The EURGBP is down-trending within a bearish channel. The moving averages have been crossing frequently though, signalling potential market indecision.

Opportunities to go short could exist around the dynamic resistance of the moving averages, around the channel resistance area and around the horizontal levels at 0.8485, 0.8540 and 0.8560. A bearish move may be rejected or reverse around the channel support area and around the horizontal support at 0.8450.

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%. There is some concern that rates will be cut due to the concern in the job market. The BOE’s approach with Brexit is still ‘wait and see what happens’. Brexit continues to cause volatile movements in GBP pairs. The European Central Bank (ECB) continue to keep rates at the record low of 0.00%. Due to weak trade growth and economic forecasts, rates are likely to stay low for the foreseeable future.

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

EURUSD – 1 Hour Chart

As suggested in yesterday’s chart analysis, the EURUSD has been finding support around 1.1130. Price is looking indecisive and is lacking trend direction. The moving averages confirm the indecision – they are tight and moving sideways.

Trading opportunities may exist around the moving averages and around the horizontal levels at 1.1070, 1.1110, 1.1130, 1.1205 and 1.1240.

The European Central Bank (ECB) continue to keep rates at the record low of 0.00%. Due to weak trade growth and economic forecasts, rates are likely to stay low for the foreseeable future. The US Federal Open Market Committee (FOMC) has cut rates by a further 25 points due to heightened concerns regarding the economy. The current Fed Funds rate is currently 1.75%. The current monetary plan is to keep the rate unchanged for the foreseeable future. There is some concern that keeping rates low could cause greater issues in the US’ financial sector.