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Technical Analysis – USDJPY neutral-to-bearish under SMAs and trend line

Posted on December 9, 2020 at 8:33 am GMT

USDJPY is tackling the mid-Bollinger band at 104.31 as a sideways move confines the pair between the 103.65 level, which happens to be the 76.4% Fibonacci retracement of the up leg from 101.17 to 111.71, and the 104.75 highs. Nonetheless, the simple moving averages (SMAs) continue to exhibit the broader negative bias. The short-term oscillators are reflecting slight improvements in positive momentum with the MACD, in the negative region, creeping above the red trigger line, while the gradual hike in [..]

Technical Analysis – Gold edges south after bounce off 5-month low

Posted on December 9, 2020 at 7:29 am GMT

Gold prices rebounded from the five-month low of 1,764 at the end of November, taking the price above the short-term simple moving averages (SMAs), though, the metal is currently retreating. The RSI indicator is heading down after it touches the overbought territory, suggesting a downside pullback, while the stochastic oscillator is dipping, approaching the bearish zone. However, the red Tenkan-sen line is holding above the blue Kijun-sen line, indicating more gains. If there is an advance above the latest high, immediate resistance could come from [..]

Technical Analysis – Silver improves above MAs; broader bias neutral

Posted on December 8, 2020 at 4:03 pm GMT

Silver has stalled its recent propulsion above the simple moving averages (SMAs), as momentum has become muted. The climb from the two-month low of 21.88 appears intact and may receive assistance from the rising 50-period SMA, while the flattening 100- and 200-period SMAs back a more neutral picture. The short-term oscillators are reflecting mixed signals in directional momentum. The MACD, in the positive region, remains above its horizontal red trigger line, while the RSI is gradually gliding lower in the [..]

Bank of Canada policy preview: The calm after the storm – Forex News Preview

Posted on December 8, 2020 at 3:54 pm GMT

The Bank of Canada will hold its last policy meeting before the year end on Wednesday at 14:00 GMT and markets are almost certain that no shift will take place as growing post-Covid prospects are outweighing the current virus resurgence. Should the Bank adopt a more optimistic tone, the Canadian dollar may seek fresh highs. No pressure to ease policy Markets are in a festive mood, celebrating the promising vaccine news that is highly projected to end the health crisis and [..]

Technical Analysis – USDCAD pauses descent but maintains bearish tone

Posted on December 8, 2020 at 2:06 pm GMT

USDCAD is trading around the 1.2782 trough, aggressively formed in October of 2018, which is freezing its negative price action as it hits a 30½-month low of 1.2767. Nonetheless, the dictating simple moving averages (SMAs) are endorsing the predominant bearish direction. However, currently the short-term oscillators are displaying strengthening positive momentum. The MACD, some distance below zero, is rising above its red trigger line, while the RSI is climbing above the 30 threshold. Furthermore, the stochastic oscillator %K line has [..]

Technical Analysis – US Dollar index holds near 32-month trough; strongly negative

Posted on December 8, 2020 at 1:49 pm GMT

The US dollar index has been in a significant bearish tendency since March 3 and last week the price posted a fresh 32-month low of 90.42. Looking at momentum oscillators on the daily chart though, they suggest an upside pullback on price. The stochastic oscillator created a bullish crossover within its %K and %D lines in the oversold territory, while the MACD is flattening beneath its trigger and zero lines. Further declines may be on the cards if the index [..]

Technical Analysis – EURCHF fails to rebound; more losses are expected

Posted on December 8, 2020 at 11:01 am GMT

EURCHF attempted to break the 1.0778 support zone within this week, but its efforts proved unsuccessful as the line held the bears at bay. Nevertheless, the negative market structure consists of lower lows and lower highs in the very short-term, while the oscillators are confirming this view. The RSI is moving lower in the negative territory, while the MACD is strengthening its bearish momentum below its trigger and zero lines. Hence, the short-run risk is looking bearish at the moment and another retest of the 1.0778 support [..]

Daily Market Comment – Investors on alert as California shuts down, gold glitters

Posted on December 8, 2020 at 10:28 am GMT

Markets revert to old pandemic playbook amid new US restrictions Nasdaq hits new highs, but other stock indices drop alongside oil Gold stages heroic comeback, bigger picture still encouraging Sterling on the back foot as PM Johnson heads to Brussels Big tech shines as pandemic concerns resurface A sense of caution has crept back into global markets, as investors try to balance the prospect of more government stimulus and central bank liquidity against the grim pandemic reality, with California announcing [..]

Technical Analysis – WTI futures retreat slightly below ascending line; bias bullish

Posted on December 8, 2020 at 9:27 am GMT

WTI crude oil futures pulled below the nine-month high of 46.67 and slightly under the short-term rising trend line in the 4-hour chart. The MACD oscillator is holding beneath its trigger line in the positive region, while the RSI indicator is flattening near its neutral threshold of 50. In trend indicators, the 20-period simple moving average (SMA) seems to be capping upside movements, favoring additional losses in the near term. If the bears take control, immediate support could come from the 40-period SMA near the 45.26 barrier. Beneath [..]

Technical Analysis – EURJPY pauses near September’s highs; bias tilted to the upside

Posted on December 8, 2020 at 9:18 am GMT

EURJPY is struggling to gain positive momentum after its fast rebound stalled around 126.40 and within September’s resistance region last week. The downside reversal in the RSI and the slowdown in the Stochastics justify the diminishing buying pressure, though both remain well above their neutral thresholds keeping the short-term risk skewed to the upside. The MACD is also comfortably within the positive territory and above its red signal line despite losing some steam, while in trend indicators, the bullish cross [..]

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