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Technical Analysis – AUDUSD maintains solid incline; sentiment favours upside

Posted on January 14, 2021 at 8:48 am GMT

AUDUSD has somewhat consolidated above the mid-Bollinger band after a subtle fade from its recent 33½-month high of 0.7820. The dominant bullish tone in the pair remains unbroken, something also reflected in the dictating simple moving averages (SMAs), which are defending the positive structure. The short-term oscillators overall are leaning towards an improving picture despite showing some dwindling in positive momentum. The MACD, far above the zero mark, has merely dipped below its red trigger line, while the upwards facing [..]

Technical Analysis – EURUSD tests 1.2130 support; neutral-to-bearish bias

Posted on January 14, 2021 at 8:16 am GMT

EURUSD has been underperforming in the past couple of sessions in the 4-hour chart, challenging the 1.2130 support level again, which has been acting as strong support over the last three days. In the very short-term, the RSI is continuing to head south in the bearish territory, suggesting more losses, however, the stochastic oscillator rebounded on the oversold zone, creating a bullish crossover within its %K and %D lines, indicating a possible pullback. In trend indicators, the simple moving averages [..]

Technical Analysis – EURCAD challenges familiar support zone

Posted on January 13, 2021 at 3:58 pm GMT

EURCAD is again seeking support around the 200-day simple moving average (SMA) following the recent pullback from a five-month high of 1.5783. The line has been limiting downside corrections since early November, hinting that another rebound at this point is possible as the Stochastics are set for an upside reversal in the oversold area, and the price is trading around the lower Bollinger band. If the bulls push above 1.5520, the price may advance towards the 20-day SMA (middle Bollinger [..]

UK GDP likely sank again in November but Bailey and vaccines give pound a lift – Forex News Preview

Posted on January 13, 2021 at 3:03 pm GMT

UK economic output likely plummeted in November – figures out on Friday are expected to reveal (07:00 GMT) – after the country was plunged in a second lockdown. But things have only gotten worse since then as England has been forced into its third lockdown. However, the grim data will probably be seen as too out-of-date to have a material impact on the pound as traders look beyond the winter shutdowns and towards mass inoculations. With the UK leading the [..]

Technical Analysis – NZDUSD maintains positive bearing despite pullback

Posted on January 13, 2021 at 1:35 pm GMT

NZDUSD appears to have found some footing on the mid-Bollinger band after receding from a recently reached 32½-month peak of 0.7314. The short-term technical indicators are revealing some weakness in positive momentum, while the soaring simple moving averages (SMAs) are endorsing a robust bullish picture. The MACD, some distance above zero, is fading below its red trigger line, while the downwards pointing RSI looks to be heading towards the 50 threshold. Furthermore, the negatively charged stochastic oscillator is promoting a [..]

Technical Analysis – EURGBP plummets to 7-week low; strongly negative

Posted on January 13, 2021 at 10:39 am GMT

EURGBP is plunging to a new seven-week low, below the 0.9000 handle, continuing the selling interest from the 0.9217 resistance. The bearish picture in the very short-term is further supported by the MACD, which is falling below its trigger line. The stochastic oscillator is holding in the oversold zone and is failing to make an attempt higher. Should prices reverse lower, immediate support could come at 0.8890 before taking the market down to 0.8865. A drop below this area would [..]

Daily Market Comment – Euro ignores Merkel’s warning of prolonged German lockdown

Posted on January 13, 2021 at 10:07 am GMT

Dollar retreats after Fed officials play down prospect of QE tapering Euro capitalizes on dollar’s woes, even as Merkel warns of extended lockdown Stock markets quiet, but crude oil continues impressive bull run US inflation data and Fed speakers today could set the tone Dollar retreats as Fed’s George plays down tapering The world’s reserve currency came back under selling pressure on Tuesday as Fed officials poured cold water on speculation around a withdrawal of their massive liquidity programs. The [..]

Technical Analysis – USDJPY advances curbed by cloud and downtrend line

Posted on January 13, 2021 at 8:57 am GMT

USDJPY seems to be re-adopting its negative tone after being redirected below the 50-day simple moving average (SMA), following the recent deflection off the downtrend line drawn from the 111.71 peak. The flattening Ichimoku lines are suggesting a pause in negative price action, while the controlling SMAs are escorting the pair even lower. The short-term oscillators currently do not give any compelling signals in directional momentum. The MACD, in the negative region, has thrusted above its red trigger line but [..]

Technical Analysis – GBPJPY tests September’s resistance; has some bullish potential

Posted on January 13, 2021 at 8:15 am GMT

GBPJPY is finally testing September’s resistance region of 141.85 after finding enough strength to breach the 140.30 ceiling that kept the bulls in check over the past two months. The positive momentum in the MACD and the rising RSI, which has still some distance to cover before touching a support-turned resistance line, suggest that there is some bullish fuel in store. Yet, to keep this optimism alive, the red Tenkan-sen line at 140.70 and the area around 140.30, where the [..]

Technical Analysis – Gold struggles below 50.0% Fibonacci; flat in short-term

Posted on January 13, 2021 at 8:03 am GMT

Gold prices found significant resistance around the 50.0% Fibonacci retracement level of the upward wave from 1,764 to 1,959.32 at 1,862, holding marginally above the 20-period simple moving average in the 4-hour chart. According to the technical indicators, the stochastic is looking overbought, as the %K line jumped above the 80 level after a bullish cross with the %D line. Moreover, the RSI is flattening around the 50 level, confirming the recent neutral bias on price. Should the precious metal [..]

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