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Technical Analysis – AUDUSD bulls are not scared of the correction yet

Posted on September 3, 2020 at 7:20 am GMT

AUDUSD printed a bearish doji just after piercing the 0.7400 level on Tuesday, foreseeing the weakness in the following sessions. The bearish action, however, could be just a correction in the 5 ½-month old uptrend as the 20- and 50-day simple moving averages (SMAs) retain their upward trajectory and remain positively aligned. In Ichimoku indicators, the red Tenkan-sen also continues to hold above the blue Kijun-sen line despite flattening a bit, while the RSI has reversed south but still has some way [..]

Technical Analysis – EURUSD plunges below 1.1800; holds in upward channel

Posted on September 3, 2020 at 7:12 am GMT

EURUSD has lost its positive momentum after the pullback on the two-and-a-half-year high of 1.2010 on September 1, and it has been trading in an upward sloping channel over the last month. In the short-term, the market could retain the selling interest as the RSI is holding well below its 50 neutral mark and the MACD has dropped below its zero and trigger lines. The bearish movement, though, could stay in place given that prices continue to fluctuate below the Ichimoku cloud and the short-term moving averages (SMAs) in the [..]

Technical Analysis – NZDJPY rallies steadily after bounce on 200-day SMA

Posted on September 2, 2020 at 3:28 pm GMT

NZDJPY is struggling to overcome the tough resistance region of highs between 71.65 and 71.90, after a bounce off the 200-day simple moving average (SMA) sky-rocketed the pair. Worth mentioning though are the rising 50- and 100-day SMAs and the forthcoming bullish crossover of the 200-day SMA by the 100-day one, which may further boost the positive picture. The short-term oscillators are also increasingly pointing to additional upside moves. The MACD, in the bullish area, is increasing above its red [..]

Nonfarm payrolls: An asymmetric event? – Forex News Preview

Posted on September 2, 2020 at 2:03 pm GMT

The US employment report for August will be released at 12:30 GMT Friday, and forecasts suggest the economy continued to recover jobs at a healthy clip. For markets though, this data set might present an asymmetric risk, with a negative surprise likely affecting the dollar and equities more than a positive one. In the bigger picture, this data is unlikely to change the ‘dollar-hating, stock-loving’ trend currently at play. Dollar falls from grace There is absolutely no love for the [..]

Technical Analysis – US 100 index rallies to fresh record highs, near overbought territory

Posted on September 2, 2020 at 1:18 pm GMT

The US 100 index has been completing new record highs over the last three consecutive days, edging towards the 12,465.02 number. According to the stochastics, positive momentum could push for further gains in the short-term as the indicator picks up steam above the 80 level. The RSI is also advancing, close to the 70 overbought threshold. In the positive scenario, where the price continues to expand above today’s high the next resistance is coming from the 261% Fibonacci extension level of the [..]

Technical Analysis – USDJPY maintains sideways bearing; momentum dries up

Posted on September 2, 2020 at 12:17 pm GMT

USDJPY appears stuck between the boundaries of 105.09 and 107.00, as the Ichimoku lines echo a momentum-deprived market. The gradually slipping simple moving averages (SMAs) hold a fairly flattened tone, aiding the current directionless price action. Furthermore, the short-term oscillators also reflect the absent directional momentum. The MACD, slightly below zero, hovers above its red signal line while the advancing RSI resides at its 50 threshold. To the upside, immediate resistance may arise from the cloud’s lower surface and the [..]

Technical Analysis – Gold edges sideways; negative pressures dwindle

Posted on September 2, 2020 at 9:22 am GMT

Gold has bounced on the Ichimoku cloud’s upper surface, while the simple moving averages (SMAs) converge slightly beneath. The recent weakness from the 1,992 barrier appears to be receding as the Ichimoku lines stabilise. Nonetheless, the SMAs and the Ichimoku cloud continue to dictate a neutral demeanour that has grasped the commodity for the last two weeks. The oscillators suggest mixed signals of directional momentum. The MACD is weakening in the positive region, slipping below its red signal line. Yet, [..]

Technical Analysis – GBPJPY tumbles from 6-month high; positive momentum feeble in short term

Posted on September 2, 2020 at 9:11 am GMT

GBPJPY is retreating after finding significant resistance at the six-month high of 142.70 and is now heading towards the 20-period simple moving average (SMA) at 141.30 in the 4-hour chart. The momentum indicators provide negative signals as the MACD oscillator is losing ground after completing a bearish crossover with its trigger line in the positive zone, while the RSI is pointing south after the pullback in the overbought territory. In the light of negative pressures, a tough support could initially develop near the 23.6% Fibonacci retracement level of the up leg from 134.00 to 142.70 at [..]

Daily Market Comment – Manufacturing data revive dollar, ECB wary of euro

Posted on September 2, 2020 at 9:08 am GMT

Encouraging ISM data bring dollar back to life, Wall Street sets new records Europe enters deflation, ECB chief economist throws first jab at the euro Today: ADP jobs report and lots of central bank speakers US manufacturing data give dollar the kiss of life A strong batch of US manufacturing numbers resurrected the dollar from the ranks of the dead and propelled Wall Street to another record high yesterday. The ISM manufacturing index jumped to its highest level in [..]

Technical Analysis – EURGBP claims new 3-month low as bears keep control

Posted on September 2, 2020 at 7:23 am GMT

EURGBP started the new month on the negative side, extending its weakness below a broken dashed ascending trendline to an almost three-month low of 0.8887 on Tuesday. The next key support is expected to occur slightly lower around the 23.6% Fibonacci retracement of the 0.9497-0.8670 downleg at 0.8864, with technical indicators reflecting that bearish forces have not faded yet. The 20-day simple moving average (SMA) has crossed below the 50-day SMA, while the Stochastics are still looking for a turning [..]

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