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Technical Analysis – EURGBP edges eastbound; upholds positive structure

Posted on October 7, 2020 at 2:34 pm GMT

EURGBP is currently tackling the mid-Bollinger band, preserving a neutral-to-bullish tone after bounces off the 50- and 100-day simple moving averages (SMAs), which followed a retreat from the recent five-and-a-half-month high of 0.9291. The dampened slopes of the 50- and 100-day SMAs continue to endorse the gradual positive incline in the pair. The short-term indicators reflect that positive momentum is strengthening. The MACD, although below its red trigger line, has held above zero, and appears set to reclaim it. Moreover, [..]

ECB minutes may expose rift over stimulus programme – Forex News Preview

Posted on October 7, 2020 at 12:19 pm GMT

The European Central Bank will publish the minutes of its September policy meeting on Thursday at 11:30 GMT as policymakers find themselves increasingly under the spotlight for their diverging views. Differences over the deflationary impact of a stronger euro and how the pandemic asset purchases are conducted have been sending conflicting signals about where the ECB stands on these issues, casting doubt on the Bank’s ability to respond effectively should another round of stimulus be required. In the meantime, the [..]

Technical Analysis – GBPJPY guided by bullish channel; negative risks not faded yet

Posted on October 7, 2020 at 12:11 pm GMT

GBPJPY landed nicely at the 50-period simple moving average (SMA) in the four-hour chart on Tuesday following the rejection near the 200-period SMA. The downside move did not break the solid ascending channel, neither it violated the upward pattern started from September’s bottoms, keeping the very short-term outlook positive. That said, the bears have not abandoned the game yet according to the RSI, which is struggling to gain momentum above its 50 neutral level. The weakness in the MACD is [..]

Daily Market Comment – Trump calls off stimulus talks, sinks Wall Street; dollar up

Posted on October 7, 2020 at 9:06 am GMT

Trump halts stimulus negotiations with Democrats, sends stocks spinning lower But losses cut short as Trump calls for standalone relief bills Dollar comes off highs, eyes FOMC minutes for fresh policy clues Markets not giving up on stimulus as Trump sows confusion Risk assets bounced back on Wednesday as investors questioned President Trump’s intentions for abruptly abandoning talks with the Democrats on a new coronavirus relief bill. A few hours after Trump put an end to the negotiations – where [..]

Technical Analysis – USDJPY radios improvement; advances display promise

Posted on October 7, 2020 at 8:28 am GMT

USDJPY is currently propelling over the controlling 50-day simple moving average (SMA) at 105.78, coupled with the cloud’s lower band, in an attempt to shift the stagnant bias. The Ichimoku lines are presently providing marginal backing to benefit the mostly sluggish price, while the gliding SMAs continue to preserve a mostly passive picture. Nonetheless, the short-term oscillators suggest that positive momentum is strengthening. The MACD, in the negative region, is above its red trigger line and is approaching the zero [..]

Technical analysis – US 500 index holds within bullish channel despite Trump’s comments

Posted on October 7, 2020 at 7:33 am GMT

The US 500 index (cash) gave up all its gains on Tuesday, which reached an almost one-month high of 3,430, to close lower following Trump’s stimulus comments. In the four-hour chart, the 50- and 100-period simple moving averages (SMAs) provided a strong footing, keeping the upward pattern in the very short-term picture intact and the price within an ascending channel. Should the 20-period SMA give way, the index could take a rest around the 3,412 resistance region before targeting the upper bound [..]

Technical Analysis – Gold recoups some losses; SMAs act as strong resistance

Posted on October 7, 2020 at 7:04 am GMT

Gold is recouping some of the losses it posted on Tuesday, hitting the 23.6% Fibonacci retracement level of the down leg from 2,015 to 1,848 at 1,887. The technical indicators seem to be mixed, as the RSI is sloping upwards in the bearish area, while the MACD is still holding beneath its trigger and zero lines with weak momentum. If the positive bias continues above the 23.6% Fibo, the price could first meet the 40-period simple moving average (SMA) at 1,896.50, before the 20-period SMA at [..]

Technical Analysis – EURCHF maintains sideways structure; bounces off 100-day SMA

Posted on October 6, 2020 at 3:24 pm GMT

EURCHF continues to cycle around the 50.0% Fibonacci retracement of the down leg from 1.1058 to 1.0504, extending the horizontal pattern that has held since the late part of July. The short-term oscillators reflect evaporating directional momentum, and thus have done little to aid a new price development. The MACD, slightly above zero, holds fairly flat below its red signal line, while the stagnant RSI has fused with its neutral threshold. Moreover, the stochastic oscillator looks relatively neutral, despite its [..]

Pound may shrug off data as Brexit and Covid are back on the menu – Forex News Preview

Posted on October 6, 2020 at 3:02 pm GMT

The British pound will see the release of monthly GDP figures for August on Friday at 07:00 GMT along with manufacturing production. Traders will be looking for clues on whether the third quarter has been more constructive for the economy after a disastrous performance in the previous two quarters. However, the data may not be fully representative of current conditions and hence could be a weak market mover as Covid infections are making a second round. Brexit and the dollar’s [..]

Technical Analysis – EURCHF maintains sideways structure; bounces on 100-day SMA

Posted on October 6, 2020 at 2:59 pm GMT

EURCHF continues to cycle around the 50.0% Fibonacci retracement of the down leg from 1.1058 to 1.0504, extending its horizontal pattern that has held since the late part of July. The short-term oscillators reflect evaporated directional momentum, and thus have done little to aid a new price development. The MACD, slightly above zero, holds fairly flat below its red signal line, while the stagnant RSI has fused with its neutral threshold. Moreover, the stochastic oscillator looks relatively neutral, despite its [..]

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