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Technical Analysis – EURGBP set to give up some ground after sharp rebound

Posted on December 21, 2020 at 11:42 am GMT

EURGBP is retracing the sharp increase that followed the positive large-gap open earlier today after failing to extend gains beyond 0.9200. The price has significantly stretched above the upper Bollinger band and the RSI is set to exit the overbought zone. Hence, some weakness could be possible in the short run, and with no key support insight, the nearest obstacle to curb downside movements could be the 0.9135 – 0.9150 area, which encapsulates the 61.8% Fibonacci level of the 0.9228 – [..]

Technical Analysis – USDJPY rises in broader bearish outlook

Posted on December 21, 2020 at 10:52 am GMT

USDJPY found significant support at the nine-month low of 102.85 on Thursday, taking the price above the 20- and 40-period simple moving averages (SMAs). The technical indicators are supporting the latest upside move as the RSI jumped above the 50 level, strengthening its momentum, while the MACD is trying to surpass the zero level. Immediate resistance could come from the 38.2% Fibonacci retracement level of the downward wave from 105.65 to 102.85 at 103.93. Overcoming this obstacle, the next target [..]

Technical Analysis – Gold in a challenging situation within bearish channel

Posted on December 21, 2020 at 8:50 am GMT

Gold resumed its bullish momentum on Monday after Friday’s pause, ticking slightly above the 1,900 level. Technically, the short-term bias is viewed as positive given the strength in the RSI and the MACD as well as the bullish intersection between the red Tenkan-sen and blue Kijun-sen lines. However, for the precious metal to attract new buyers, it should close decisively above the roof of the descending channel seen around 1,920, where the surface of the Ichimoku cloud and the 50% Fibonacci retracement of the 2,079 [..]

Technical Analysis – EURUSD posts negative gap after reaching 32-month high

Posted on December 21, 2020 at 7:12 am GMT

EURUSD surged to a 32-month high on Thursday, extending its bullish rally from the 1.1611 support level. Today, the market opened with a negative gap, retreating from the multi-month high. The positive picture in the medium term is further supported by the MACD, which is rising above its trigger line, however, the RSI is suggesting a possible pullback as the index is sloping south in the overbought territory. In trend indicators, the simple moving averages (SMAs) are following the price [..]

Week Ahead – Stimulus is coming to town

Posted on December 18, 2020 at 2:06 pm GMT

It is a very quiet week in terms of events, as trading winds down for the holiday season. This implies that liquidity may be in short supply, setting the stage for some explosive moves if there is any breakthrough in the Brexit crusade or the US stimulus saga. Overall, markets are set to end a crazy year on an incredibly optimistic note, with a little help from central banks showering investors with cheap money. The ‘party’ could continue into next [..]

Technical Analysis – US 30 index creeps to new all-time highs; positive momentum sluggish

Posted on December 18, 2020 at 1:28 pm GMT

The US 30 stock index (Cash) has logged a fresh all-time high of 30,345 as it continues to hold above the simple moving averages (SMAs), crawling gradually higher. The 200-period SMA is backing the positive structure, while the casual hike in the 50- and 100-period SMAs is maintaining the slow upwards pace in the index. Further backing this view is the relaxed incline in the Ichimoku lines. The short-term oscillators are reflecting weak momentum but lean towards the upside. The [..]

Technical Analysis – NZDUSD finds support at 20-period SMA; positive in medium-term

Posted on December 18, 2020 at 11:38 am GMT

NZDUSD is rising after the downside pullback off the 32-month high of 0.7170, which hit the 20-period simple moving average (SMA) at 0.7110. The RSI is pointing marginally up after the falling move from the overbought territory, while the MACD is dropping below its trigger line in the positive region, confirming the latest decline. Further losses may meet support around the 40-period SMA at 0.7095 ahead of the rising trend line at 0.7075, overlapping the upper surface of the Ichimoku cloud. Not far below, support [..]

Technical Analysis – GER 30 index eyes February’s record high; bias bullish

Posted on December 18, 2020 at 11:27 am GMT

The German 30 index (cash) is in a breathing distance from February’s record high of 13,826 after finally breaching the tough resistance bar of 13,460. The technical picture continues to look constructive for additional gains as the red Tenkan-sen line is sloping upwards again after refusing to cross below the blue Kijun-sen. In other indicators, the MACD is strengthening above its red signal line, while the rising RSI and the fast-Stochastics are also reflecting a bullish bias, though some caution [..]

Technical Analysis – GBPUSD maintains bullish tone despite pullback

Posted on December 18, 2020 at 11:01 am GMT

GBPUSD is currently finding some footing on the mid-Bollinger band around 1.3491, after reversing from a resistance band of 1.3607-1.3629, where it formed a 31½-month high of 1.3623. The rising simple moving averages (SMAs) are continuing to back price’s intact bullish demeanour. The short-term oscillators are reflecting a stall in negative momentum. The MACD’s drop below its red trigger line deep in the positive region, is decelerating, while the RSI has bounced off its neutral threshold and is now pointing [..]

Daily Market Comment – Dollar edges up amid the wait for elusive stimulus and Brexit deals

Posted on December 18, 2020 at 10:01 am GMT

Dollar selling eases as caution creeps in, but still set for big weekly losses The long wait for deals in Washington and Brussels takes edge off risk rally Stocks mixed, some volatility may lie ahead Dollar bears pause for breath as Congress in race against time The US dollar was attempting to end its week-long losing streak on Friday as doubts about how soon a stimulus deal in Congress and a Brexit trade pact between the UK and EU can [..]

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