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Technical Analysis – EURJPY consolidates but upside risks remain

Posted on December 17, 2020 at 6:59 am GMT

EURJPY nudged back above the 50-period simple moving average (SMA), improving slightly within the sideways move. The flattening 50-period SMA is reflecting the pause in the ascent while the rising 100- and 200-period SMAs are defending the positive structure. The short-term oscillators reflect lethargic momentum. The MACD and its red trigger are sluggish in the vicinity of its zero line, while the RSI is trying to maintain its push above the 50 threshold. The stochastic oscillator beneath the 80 level [..]

New Zealand to post Q3 GDP as recovery gathers steam, kiwi soars – Forex News Preview

Posted on December 16, 2020 at 3:29 pm GMT

Third quarter GDP figures are scheduled for release in New Zealand on Thursday (Wednesday, 21:45 GMT), following hot on the heels of the government’s upwardly revised economic projections earlier today. The Pacific nation’s economy is forecast to have bounced back strongly in Q3 despite its biggest city – Auckland – spending much of August and September under lockdown. Although the now ‘outdated’ data won’t change anything as far as the outlook is concerned, it could reinforce the kiwi’s uptrend if [..]

SNB meeting: Same old blues – Forex News Preview

Posted on December 16, 2020 at 3:13 pm GMT

The Swiss National Bank (SNB) will conclude its quarterly meeting at 07:30 GMT Thursday. No change in policy is expected even though Switzerland remains trapped in deflation, as the SNB is practically out of firepower. Instead, the central bank is likely to repeat that its primary weapon will remain FX intervention. The market reaction is likely to be muted, with the franc’s overall trajectory likely to depend mostly on external elements, like the outcome of Brexit talks and how quickly [..]

Technical Analysis – Dollar index registers its worst year since 2017; eyes on 90.00 level

Posted on December 16, 2020 at 2:50 pm GMT

The US dollar index (futures) had one of its worst years since 2017 despite the impressive rally to a 3 ½-year high of 103.79 in March. The index is set to post a yearly loss of around 7.0% and unless the 90.00 barrier puts breaks to the sell-off, the market could depreciate towards the 2018 troughs registered within the 88.88 – 88.40 zone. This is also where the 61.8% Fibonacci of the 2013 – 2017 upleg is placed, hence it [..]

Technical Analysis – JP 225 index holds in ascending channel in short term

Posted on December 16, 2020 at 1:53 pm GMT

The JP 225 index attempted to break the upper border of the ascending channel at 26,950 several times in the past, but its efforts proved unsuccessful. Nevertheless, the positive market structure consisted of higher lows, while the short-term oscillators are also not yet in favor of the bears; the RSI is moving sideways above its 50 neutral mark and the MACD has stabilized its momentum in the positive area and is currently moving around its red signal line. However, the [..]

Technical Analysis – Gold set for a close above 200-SMA and within cautious territory

Posted on December 16, 2020 at 10:24 am GMT

Gold is set to close above the 200-period simple moving average (SMA) in the four-hour chart, but there is some suspicion that the precious metal could soon quit efforts given the previous downside reversals around that line. The 1,865 former support zone is also under the spotlight and could develop into a resistance area in the short run, though the momentum indicators are currently challenging that scenario. The RSI is sloping upwards but has yet to reach its 70 overbought mark, the stochastics hold [..]

Daily Market Comment – Two deals in the making and a Fed dilemma

Posted on December 16, 2020 at 10:10 am GMT

US congressional leaders close in on a stimulus deal as talks continue Brexit chatter lifts pound amid rumours a trade deal is within grasp Dollar on the backfoot ahead of least predictable Fed meeting of the year Hopes rise for a deal in Congress Hopes are running high on Capitol Hill that a stimulus deal can be reached after reported progress on Tuesday. US political leaders are set to meet again later today as they inch closer to agreeing on [..]

Technical Analysis – GBPJPY spikes higher around upper Bollinger band

Posted on December 16, 2020 at 9:44 am GMT

GBPJPY is ticking up after the bullish gap on Monday and the bounce off the 23.6% Fibonacci retracement level of the upward wave from 134.37 to 140.70 at 139.20, which overlaps with the 100-period simple moving average (SMA) in the 4-hour chart. According to the technical indicators, the MACD is advancing above the trigger and zero lines, while the RSI indicator is sloping north in the bullish territory. Immediate resistance could come from the upper Bollinger band around the 140.000 [..]

Technical Analysis – EURGBP stalls decline with bounce off lower band at 0.9005

Posted on December 16, 2020 at 9:22 am GMT

EURGBP’s neutral-to-bullish picture seems to be deteriorating as the price dipped under the 100-period simple moving average (SMA), touching the mid-Bollinger band at 0.9005. In spite of the rising 100-period SMA, the 200-period SMA is endorsing a more neutral tone, while the slowing upward pace in the 50-period SMA is sponsoring a fading positive picture. The short-term oscillators are suggesting mixed signals in directional momentum. The MACD is plunging below the zero mark, distancing itself from its red trigger line, [..]

Technical Analysis – NZDUSD flirts with 32-month peak; bulls have control

Posted on December 16, 2020 at 7:47 am GMT

NZDUSD has been in a strong bullish tendency since March 19, reaching a fresh 32-month high of 0.7119 on Monday. The flatten mode around the overbought territory in the RSI and the slowdown in the MACD oscillator show somewhat weak buying pressure, though both remain well above their neutral thresholds keeping the short-term risk skewed to the upside. In trend indicators, the bullish cross between 20- and 40-day simple moving averages (SMAs), created at the beginning of the previous month, [..]

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