News

Technical Analysis – EURGBP could provide the bulls a second chance

Posted on September 17, 2020 at 11:32 am GMT

EURGBP pulled back below the 0.9290 resistance for the second time this year but the bulls may have a second chance to retake control as the pair is exposed to a key supportive area. The 50% Fibonacci retracement of the 0.9497-0.8670 downleg is currently in action at 0.9080, blocking any additional negative correction. If it proves fragile, the descending trendline with the help of the 38.2% Fibonacci of 0.8980 could still keep the bulls on the surface if they manage to put [..]

Daily Market Comment – Investors heartbroken after Fed fires a blank, BoE next

Posted on September 17, 2020 at 10:21 am GMT

Fed commits to inflation overshooting regime, but delivers no new measures Dollar grinds higher, stocks in agony as investors expected heavier artillery Yet, this is probably not a game changer in the bigger picture Attention now turns to the Bank of England decision today Fed takes a small step back, markets throw a tantrum It was another eventful FOMC meeting. The Fed officially embraced its new inflation overshoot regime, albeit not unanimously. The vote was 8-2, with Kaplan and Kashkari [..]

Technical Analysis – AUDUSD’s stamina preserves bullish bearing

Posted on September 17, 2020 at 8:56 am GMT

AUDUSD, in spite of its recent stalling, maintains a sturdy positive structure above the simple moving averages (SMAs) and the Ichimoku cloud. Aiding the climb is the intact bullish drive in the Ichimoku lines and the robustness of the upward sloping 50- and 100-day SMAs. The short-term oscillators illustrate the recent pause in the pair, reflecting the reduction in positive momentum. The MACD, in the positive area, is carefully shadowing below its red trigger line, while the RSI is weakening [..]

Technical Analysis – USDCHF exposed to a bullish trend reversal

Posted on September 17, 2020 at 7:44 am GMT

USDCHF’s sell-off seems to have found a bottom around its 5 ½-year low as the five-week old range looks to have transformed to an inverse head and shoulder pattern – a bullish signal that the price may change direction to the upside. However, this is not the only encouraging sign. In momentum indicators, the RSI has been printing higher highs and higher lows along an ascending trendline and is currently ready to cross back above its 50 neutral mark. Likewise, the MACD [..]

Technical Analysis – EURUSD plummets to 1-month low; neutral in bigger picture

Posted on September 17, 2020 at 7:07 am GMT

EURUSD plunged to a new one-month low of 1.1737, posting a spike below the strong barrier of 1.1753. The selling interest started after the pull back from the 1.1900 handle and the price declined beneath the simple moving averages (SMAs). The MACD is falling below its trigger and zero lines, however, the RSI is trying to turn north in the bearish zone. Should the pair stretch south, 1.1695 could provide immediate support before the pair touches the 1.1625 inside swing [..]

Technical Analysis – EURCHF retracts as negative sentiment sustains sideways pattern

Posted on September 16, 2020 at 3:02 pm GMT

EURCHF has recently receded below the 50-day simple moving average (SMA), determined to test the base of a near two-month persisting range. Negative sentiment appears to be prevailing in the short-term oscillators as well, despite the bullish bearing of the 50- and 100-day SMAs. The MACD is barely holding in the positive region but below its red trigger line, while the RSI has slipped into bearish territory. The stochastic lines appear tangled and remain in the oversold zone. If selling [..]

New Zealand to join global recession club as RBNZ readies next move – Forex News Preview

Posted on September 16, 2020 at 2:37 pm GMT

New Zealand will report GDP numbers for the second quarter on Thursday (Wednesday, 22:45 GMT) and will be the last of the major advanced economies to do so. Currently, the United Kingdom is at the bottom of the Q2 growth table and Australia is at the top. The GDP data is likely to show New Zealand falls somewhere in the lower range of that table, taking a bigger hit than its aussie neighbour. But with a recovery now underway, the [..]

Technical Analysis – GBPJPY jumps higher, but still negative in near term

Posted on September 16, 2020 at 1:23 pm GMT

GBPJPY is advancing above the 20-period simple moving average (SMA) in the 4-hour chart, moving towards the significant 136.62 resistance level. The technical indicators are endorsing the recent upside run, with the MACD gaining ground above its trigger line and the RSI pointing north. An extension above the 136.62 key level could meet the area between the 23.6% Fibonacci retracement level of the down leg from 142.70 to 136.38 at 137.10 ahead of the 40-period SMA at 137.53. Further up, resistance [..]

Technical Analysis – EURGBP under negative strain; retraces to 38.2% Fibonacci

Posted on September 16, 2020 at 12:52 pm GMT

EURGBP dived towards the 0.9130 barrier, that being the 38.2% Fibonacci retracement of the up leg from 0.8865 to 0.9291, seeking to extend a deeper withdrawal from the recent 5½-month peak of 0.9291. The falling red Tenkan-sen line is fuelling the descent and could boost it with a bearish overlap of the blue Kijun-sen line. Additional negative backing is reflected in the short-term oscillators. The MACD, in the positive region, is decreasing below its red signal line, while the RSI [..]

Technical Analysis – USDCAD hits a ceiling around 1.3260

Posted on September 16, 2020 at 11:34 am GMT

USDCAD has been trending upwards over the last two weeks following the bounce off a fresh eight-month low of 1.2993. However, a strong resistance around the 1.3207 barrier has been a barrier to additional gains over the past week, shifting the spotlight back to the ascending trend line around 1.3150. The momentum indicators in the four-hour chart though are currently supporting the ongoing sideways move in the price. Specifically, the RSI is holding around the 50 level, while the stochastic is reversing lower after posting a bearish crossover within its %K [..]

Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. XM accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The research and analysis does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it.

It has not been prepared in accordance with legal requirements designed to promote the independence of research, and as such it is considered to be marketing communication. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We aim to establish, maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence, which requires our employees to act in our clients’ best interests and to disregard any conflicts of interest in providing our services.

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losing all of your invested capital, so please make sure that you fully understand the risks involved.