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Technical Analysis – GBPAUD revives downtrend as bearish bias holds

Posted on December 11, 2020 at 1:19 pm GMT

GBPAUD is looking for a close below the 1.7540 base, which triggered September’s upward correction and stretched July’s appreciation to a four-month high of 2.0845, after Thursday’s steep decline. The Stochastics and the RSI, however, have yet to ovecome oversold conditions as the former is heading towards 20 and the latter continues to point downwards below 30. Still, the recent squeeze in the Bollinger bands and the recent closure below them, hint that the bulls could be around the corner. [..]

Daily Market Comment – ECB ‘disappointment’ lifts euro, equities struggle

Posted on December 11, 2020 at 12:05 pm GMT

Euro jumps after ECB fails to over-deliver on stimulus package Stocks bounce as Mnuchin hails progress in stimulus talks, but fall back Oil breaks higher, unscathed by recent negative developments Brexit will continue to dominate ahead of Sunday ‘deadline’ ECB firepower fails to impress markets, euro spikes Those looking for a euro-killing stimulus package by the European Central Bank were left disappointed yesterday, with policymakers delivering exactly as much ‘juice’ as markets anticipated. The Bank expanded its QE program by [..]

Week Ahead – Fed could under-deliver as others to sit out; flash PMIs may test market optimism

Posted on December 11, 2020 at 12:02 pm GMT

Markets will go into high gear in the coming week as a jam-packed schedule looks sure to inject plenty of excitement before traders disappear for the festive period. The Federal Reserve will be headlining the week as speculation is rife about whether or not more stimulus is on the way. But there’s less uncertainty about the SNB, Bank of England and Bank of Japan meetings as a major shift in policy is not anticipated from any of them. Should central [..]

Technical Analysis – US 30 index falls slightly; broader outlook is positive

Posted on December 11, 2020 at 10:32 am GMT

The US 30 stock index (Cash) is edging south from its freshly logged all-time-high of 30,313.56. Positive sentiment seems to be taking a breather as the momentum indicators are losing some momentum. The MACD, in the positive region, is holding below its trigger line, while the RSI is exhibiting a stalled positive picture. However, the bullish 50- and 100-day simple moving averages (SMAs) could boost the price, sending the index to uncharted peaks. In a bullish scenario, immediate resistance may develop [..]

Technical Analysis – USDCAD’s bearish bias overpowers push higher

Posted on December 11, 2020 at 10:31 am GMT

USDCAD is finding some footing around the 1.2700 handle, while prevailing negative pressures are reinforcing downside risks. The dipping 200-day simple moving average (SMA) and the diving 50- and 100-day SMAs are strengthening the bearish structure. Additionally, the descending Ichimoku lines are further dampening the pair’s picture. The short-term oscillators presently reflect mixed signals in directional momentum. The MACD, in the negative region, is declining below its falling red trigger line. However, the RSI is pointing upwards and is trying [..]

Technical Analysis – USDCAD’s bearish bias overpowers, despite push higher

Posted on December 11, 2020 at 10:08 am GMT

USDCAD is finding some footing around the 1.2700 handle, while prevailing negative pressures are reinforcing downside risks. The dipping 200-day simple moving average (SMA) and the diving 50- and 100-day SMAs are strengthening the bearish structure. Additionally, the descending Ichimoku lines are further dampening the pairs’ existing picture. The short-term oscillators presently are reflecting mixed signals in directional momentum. The MACD, in the negative region, is declining below its falling red trigger line. However, the RSI is pointing upwards and [..]

Technical Analysis – GBPJPY feels the blues around supportive trendline

Posted on December 11, 2020 at 8:44 am GMT

GBPJPY caved in to selling pressure that held once again around the tough 140.30 ceiling, falling back to test the short-term ascending trendline within the 137.00 zone. Meanwhile, the RSI has already broken its own upward-sloping trendline and is set to violate its 50 neutral mark on the downside too as the Stochastics sail southwards and the MACD keeps decelerating below its red signal line. The above indicators signal that bearish forces may remain in play in the short run, though [..]

Technical Analysis – GBPUSD rebounds off 38.2% Fibonacci; some gains are expected

Posted on December 11, 2020 at 7:19 am GMT

Following an aggressive sell-off, GBPUSD found support at the 38.2% Fibonacci retracement level of the up leg from 1.2854 to 1.3538 at 1.3276and is currently posting some gains over the latest 4-hour sessions The price plummeted beneath the 20- and 40-period simple moving averages, while the momentum indicators are continuing to move in the negative territory. However, the RSI is trying to recover, while the MACD is flattening. More advances could send the price towards the 20-period simple moving average (SMA) at 1.3354 before touching the 23.6% [..]

Technical Analysis – USDCHF retains bearish outlook with commanding MAs

Posted on December 10, 2020 at 2:38 pm GMT

USDCHF is weighing down on the lower Bollinger band located at the more than 5½-year low of 0.8870. The diving simple moving averages (SMAs) and their dictating bearish tone may boost risks to the downside. However, the short-term oscillators are displaying a slight pickup in positive momentum, despite bigger negative pressures. In the bearish territory, the MACD’s climb above its red trigger line looks to be easing a bit, while the RSI is rising in the bearish zone. Furthermore, the [..]

Technical Analysis – EURJPY approaches 126.65 again; looks bullish

Posted on December 10, 2020 at 1:14 pm GMT

EURJPY had a bullish start on Thursday, with the price flirting with the upper surface of a short-term rectangle. The pair has also increased its distance above the Ichimoku cloud, indicating that the recent upward move might hold for longer. The momentum indicators are bullish as the RSI is holding in the positive territory and is strengthening. Also, the stochastic oscillator is heading north after the bullish cross within the %K and %D lines in the oversold zone. Should the price resume bullish momentum, the 126.65 top [..]

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