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Technical Analysis – EURGBP recovers from fresh 6-month low

Posted on November 11, 2020 at 10:38 am GMT

EURGBP touched a fresh six-month low of 0.8860 today after the strong sell-off below the 0.8940 barrier. The MACD oscillator is falling below its trigger and zero lines with strong momentum, while the RSI is moving sideways near the 30 level. The 20- and 40-period simple moving averages (SMAs) are heading south after they posted a bearish crossover. Immediate support could come from the six-month trough of 0.8860 before falling further towards the inside swing high of May 4 at [..]

Daily Market Comment – RBNZ lights a fire under the kiwi, sterling climbs too

Posted on November 11, 2020 at 9:51 am GMT

RBNZ plays down negative rates, kiwi flies Sterling leaps after divisive bill suffers crushing defeat in Lords Markets in a cheerful mood overall, but watch the Fed Kiwi charges higher after RBNZ ‘disappoints’ The kiwi dollar took off like a rocket on Wednesday, extending the gains it recorded amid all the vaccine enthusiasm, after the Reserve Bank of New Zealand poured cold water on speculation for negative rates. While the Bank maintained a cautious tone and even introduced a [..]

Technical Analysis – USDJPY’s strong jump suggests bullish actions

Posted on November 11, 2020 at 7:41 am GMT

USDJPY is developing slightly above the 23.6% Fibonacci retracement level of the down leg from 111.70 to 103.18 at 105.20 after the sharp buying interest from the new eight-month trough of 103.18, achieved on November 6. The price touched the upper boundary of the long-term descending channel, while a jump above it would shift the bearish structure to neutral. According to technical indicators, the MACD jumped above its trigger line in the negative territory, while the RSI is pointing marginally [..]

Technical Analysis – AUDUSD maintains bullish bias despite latest pullback

Posted on November 10, 2020 at 4:33 pm GMT

AUDUSD has retreated from the fresh high of 0.7339, which formed within a resistance section of peaks from back in September. The simple moving averages (SMAs) continue to convey improvements in the pair with their recently acquired bullish demeanour. The short-term oscillators are transmitting conflicting signals in directional momentum. The MACD, in the positive zone, is decreasing below its red trigger line, while the RSI’s descent in bullish territory is slowing ahead of the 50 threshold. That said, the stochastic [..]

Technical Analysis – WTI futures’ pullback finds traction off 200-MA

Posted on November 10, 2020 at 3:21 pm GMT

WTI futures are confronting the 41.00 handle after finding a foothold on the 200-period simple moving average (SMA). The bearish demeanour of the SMAs looks to be fading, while the rising 50-day SMA is assisting the commodity’s bounce off the 200-day SMA. The short-term oscillators are currently transmitting an increase in positive momentum. The MACD, some distance in the positive region, is rising above its red trigger line, while the RSI is retesting the 70 mark. Moreover, the %K line [..]

US CPI data eyed as vaccine news overwhelms markets – Forex News Preview

Posted on November 10, 2020 at 3:11 pm GMT

In America, the highlights this week will be the latest CPI inflation data at 13:30 GMT Thursday and a speech by Fed Chairman Powell at 16:45 GMT, which could shed some light on whether the Fed will ramp up its stimulus dose again this year. The split Congress outcome and lack of a powerful relief package suggest it should, but the latest vaccine news has cast doubt on that. As for the dollar, any hints that the Fed won’t follow [..]

Technical Analysis – USDCAD crawls near 20-period SMA; continues to recover

Posted on November 10, 2020 at 2:40 pm GMT

USDCAD has been nicely recovering the downfall followed that took place in late October, crawling near the 20-period simple moving average and back into 1.3000 territory. From a technical perspective, the very short-term bias is viewed as positive, reflected by the improvement in the RSI and the MACD. The increasing distance between the red Tenkan-sen and blue Kijun-sen lines is another bullish signal. Yet only a decisive close above the resistance of 1.3108, can boost buying pressure towards the 200-period [..]

Daily Market Comment – Wall Street charges higher on vaccine news, but bond market ruins the party

Posted on November 10, 2020 at 12:55 pm GMT

US stock market hits new record after Pfizer vaccine announcement Crude oil and commodity currencies soar, yen crumbles alongside gold However, the party doesn’t last – stocks give up most gains, dollar reverses higher RBNZ meeting coming up, vaccine and stimulus news remain in focus Pfizer vaccine news catapult markets to new records Christmas came early for investors this year, with global equities charging higher and safe havens falling apart after drug maker Pfizer announced that the coronavirus vaccine it [..]

Technical Analysis – EURCHF spikes around 1.0800; indicators look overbought

Posted on November 10, 2020 at 9:44 am GMT

EURCHF is still stretching the positive move after the sharp rally on Monday, surpassing the 1.0800 psychological level. Also, the pair climbed beyond the 200-period simple moving average (SMA), shifting the bearish bias to bullish. However, the RSI and the MACD seems to be overbought, suggesting a possible downside correction. Immediate resistance could come from the 1.0815 barrier, identified on September 30 ahead of the 1.0830 powerful level. Surpassing these lines, the 1.0850 high and the 1.0876 spike, achieved on [..]

Technical Analysis – EURJPY shifts sideways as resistance ceiling blocks gains

Posted on November 10, 2020 at 9:36 am GMT

EURJPY was overwhelmed by buying interest yesterday that thrusted the pair back above the 100- and 50-day simple moving averages (SMAs). Yet, advances hit a wall and the pair now seems to be steering into a more sideways structure. The minor upward inclines of the 100- and 200-day SMAs are preserving the positive picture, while the falling 50-day SMA promotes negative sentiment. The short-term oscillators also reflect the pair’s recent freeze in positive momentum. The MACD, in the negative region, [..]

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