News

Technical Analysis – GBPUSD favours upside; vicious appreciation boosts bias

Posted on December 24, 2020 at 11:35 am GMT

GBPUSD recently logged nine consecutive green candles and is quickly approaching the 31½-month high of 1.3624. The price found some footing just beneath the 200-period simple moving average (SMA) and then skyrocketed from there, restoring the bullish tone within the pair. The rising Ichimoku lines and the 50-period SMA are endorsing further gains, while the gradual upwards incline in the 100- and 200-period SMAs is preserving positive sentiment. Likewise, the short-term oscillators are skewed to the upside. The MACD, in [..]

Daily Market Comment – Brexit deal announcement imminent, pound up

Posted on December 24, 2020 at 9:57 am GMT

UK and EU on the verge of a historic post-Brexit trade agreement, pound advances Trump imperils stimulus deal, risks government shutdown But markets calm in thin holiday trade; dollar drifts lower, stocks edge up Brexit deal is ‘done’ Britain and the European Union appear to be on the cusp of agreeing to a historic post-Brexit trade pact, with officials reportedly working through the night to put the finishing touches to the 2,000-page text. Negotiators continue to thrash out the final [..]

Technical Analysis – EURUSD constrained within a triangle pattern

Posted on December 24, 2020 at 9:12 am GMT

EURUSD has been slowly regaining ground along the upper surface of the Ichimoku cloud and the base of a small symmetrical triangle in the four-hour chart, but a decisive close above the 1.2200 has been somewhat burdensome recently. The momentum indicators suggest depressed bullish pressures in the short run as the RSI and the MACD continue to hover near their neutral levels and the red Tenkan-sen line remains attached to the blue Kijun-sen. The topline of the triangle seen around [..]

Technical Analysis – USDCAD declines further below descending trend line

Posted on December 24, 2020 at 9:03 am GMT

USDCAD has been consolidating losses since the day it plunged from the more than four-year high of 1.4668. Currently, in the very-short-term, the price is hovering above the 32-month low of 1.2680 and is flirting with the 20-day simple moving average (SMA). The momentum indicators are suggesting that the sell-off may continue. The RSI is pointing down in the negative territory, while the stochastic posted a bearish crossover within its %K and %D lines. Additionally, in the Ichimoku indicator, the red Tenkan-sen line is flattening below the blue Kijun-sen [..]

Technical Analysis – AUDUSD restores bullish bias with foothold on mid-Bollinger band

Posted on December 24, 2020 at 8:39 am GMT

AUDUSD’s recent traction off the mid-Bollinger band at 0.7461 appears to have revived the upside tendency, which commenced from the 0.6990 low of November 2. In addition, the climbing simple moving averages (SMAs) are safeguarding the dominant bullish picture. Furthermore, positive momentum seems to be improving within the short-term technical indicators. The MACD has slid marginally below its somewhat stationary red signal line but remains deep in the positive region, while the rising RSI is approaching the 70 level. Additionally, [..]

Technical Analysis – WTI futures find floor at 20-day SMA; outlook bullish

Posted on December 24, 2020 at 7:50 am GMT

WTI crude oil futures stretched theirs seven-month old rally to a ten-month high of 49.39 on Friday before pulling slightly lower. The MACD seems to be losing momentum below its trigger line, the RSI is still hovering in the positive region following the pullback from the overbought territory, while the red Tenkan-sen line is flattening above the blue Kijun-sen, all signaling a more cautious trading in the short term. The market trend, however, is likely to hold on the upside as long as the price trades above its simple moving averages (SMAs) and the [..]

Technical Analysis – USDCHF’s downside risks prevail below SMAs

Posted on December 23, 2020 at 4:11 pm GMT

USDCHF is closing in on the mid-Bollinger band at 0.8918 after improving from the recently formed near 71-month bottom of 0.8820. The pair remains dominated by a strong bearish stance, also being exhibited from the downward sloping simple moving averages (SMAs). However, the short-term oscillators are displaying a slight pickup in positive sentiment. The MACD, in the negative area, is increasing above its red trigger line, while the RSI is trying to sustain its push higher in bearish territory. Moreover, [..]

Technical Analysis – GBPJPY sores within the confines of a sideways market

Posted on December 23, 2020 at 2:47 pm GMT

GBPJPY today, aggressively stepped back above the simple moving averages (SMAs) and the mid-Bollinger band, taking out the nearby highs of 139.50 and 139.77 before tackling the upper Bollinger band at 139.91. The steady incline in the 200-period SMA promotes a positive picture, while the fairly horizontal 50- and 100-period SMAs endorse a more neutral tone. The short-term oscillators are reflecting increasing positive sentiment. The strengthening MACD is pushing higher above its red signal line and pierced above the zero [..]

Technical Analysis – GBPJPY soars within the confines of a sideways market

Posted on December 23, 2020 at 2:46 pm GMT

GBPJPY aggressively stepped back above the simple moving averages (SMAs) and the mid-Bollinger band today, taking out the nearby highs of 139.50 and 139.77 before tackling the upper Bollinger band at 139.91. The steady incline in the 200-period SMA promotes a positive picture, while the fairly horizontal 50- and 100-period SMAs endorse a more neutral tone. The short-term oscillators are reflecting increasing positive sentiment. The strengthening MACD is pushing higher above its red signal line and has pierced above the [..]

Technical Analysis – US 500 index eases a bit below all-time high

Posted on December 23, 2020 at 1:49 pm GMT

The US 500 index has declined slightly from the all-time high of 3,730.53 over the last couple of days, taking the momentum indicators lower. The RSI dropped from the 70 level but is now pointing upwards again, while the stochastic is heading south after the downward move from the overbought territory. The 50-, 100- and 200-day simple moving averages (SMAs) are confirming the long-term upside tendency as the price remains well above them. If the price falls further, it could touch the 3,589 barrier before heading south [..]

Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. XM accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The research and analysis does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it.

It has not been prepared in accordance with legal requirements designed to promote the independence of research, and as such it is considered to be marketing communication. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We aim to establish, maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence, which requires our employees to act in our clients’ best interests and to disregard any conflicts of interest in providing our services.

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losing all of your invested capital, so please make sure that you fully understand the risks involved.