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Technical Analysis – EURJPY undergoes downside pressures; uptrend confronted

Posted on August 20, 2020 at 1:33 pm GMT

EURJPY is currently suffering negative stresses, which are attempting to destabilize the steady ascent from the 119.30 low. The price has retreated past the 50-period simple moving average (SMA) at 125.67 and below the Ichimoku cloud, until the 100-period SMA, strengthening negative momentum, something also displayed in the short-term oscillators. The MACD is fading below its red signal line and the zero mark, while the RSI is receding below the diagonal line in bearish territory. Furthermore, the stochastic oscillator has [..]

Technical Analysis – EURUSD loses momentum beneath 27-month high

Posted on August 20, 2020 at 1:00 pm GMT

EURUSD is on course for a bearish correction after the spike on the 27-month peak of 1.1965 on Tuesday. The sell-off, especially on Wednesday, has drove the price near the 40-period simple moving average (SMA) in the 4-hour chart. The momentum indicators are supportive of the bearish picture, with the RSI remaning inside negative territory, the MACD losing ground towards the zero line. Immediate support is being provided by the Ichimoku cloud around 1.1811 ahead of the 23.6% Fibonacci retracement [..]

Technical Analysis – USDCHF tumbles after the pullback on the falling trend line

Posted on August 20, 2020 at 12:17 pm GMT

USDCHF pulled back on the two-week descending trend line around 0.9160 after the aggressive buying interest in the preceding sessions. The RSI rebounded on the 70 level, while the stochastic oscillator created a bearish crossover within its trigger and zero lines in the overbought region. Both are suggesting the continuation of the bearish sentiment. If the pair weakens, the 23.6% Fibonacci retracement level of the down leg from 0.9467 to 0.9008 at 0.9116 could provide immediate support ahead of the [..]

Technical Analysis – AUDJPY capped by recent highs, uptrend pauses

Posted on August 20, 2020 at 11:14 am GMT

AUDJPY has been trading in a narrow sideways range for a month now, between 76.80 and 74.70. A break in either direction is needed to reveal the pair’s short-term tendency, though in the bigger picture, only a decisive move below 72.70 would call into question the five-month uptrend. Short-term oscillators detect fading upside momentum and imply that the pair could test the lower bound of its recent range soon. The RSI is pointing down and looks ready to cross [..]

Technical Analysis – AUDUSD retains steady positive tone despite pullback

Posted on August 20, 2020 at 8:23 am GMT

AUDUSD has managed to preserve its five-month progression from the 17½-year low of 0.5506 to the fresh high of 0.7275. The bullish simple moving averages (SMAs) and the positive demeanour of the Ichimoku lines continue to convey optimism in the pair, despite its recent weakening. The technical oscillators mirror the current pullback in the pair displaying the fading in positive momentum. The MACD, in the positive region, is cautiously trailing below the red signal line, while the RSI is waning [..]

Technical Analysis – WTI futures develop with weak momentum near 5-month high

Posted on August 20, 2020 at 7:16 am GMT

WTI crude oil is moving sideways in the short-term, in a slightly bullish structure beneath the five-month high of 43.52. The 20- and 40-day simple moving averages (SMAs) are acting as strong support for the bears; however, the MACD oscillator is indicating a negative divergence in the market, signaling a possible bearish retracement. A successful climb above the five-month high of 43.52 could challenge the 48.80 resistance, registered on March 3. Even higher, the 54.62 barrier taken from the peak [..]

Eurozone PMIs may point to slowing recovery; will the soaring euro care? – Forex News Preview

Posted on August 19, 2020 at 2:38 pm GMT

The flash PMI readings for August will be the sole economic highlight for the euro area this week as investors try to get a better sense of where Europe’s recovery is headed amid a spike in coronavirus cases over the summer. The data, due at 08:00 GMT on Friday, might point to the recovery losing some steam in the past couple of weeks as businesses face challenging trading conditions. However, unless the PMIs widely undershoot expectations, the euro will likely [..]

Technical Analysis – US 500 index strongly bullish; looking overbought

Posted on August 19, 2020 at 12:45 pm GMT

The US 500 index reached another all-time high of 3,397.36 earlier today as the index extends one of its fastest bulls run in its history. The momentum indicators are looking overbought as the RSI is flattening near the 70 level, while the MACD is moving sideways in the positive territory. Should prices reverse lower, immediate support could come at the red Tenkan-sen and the blue Kijun-sen lines at 3,360 and 3,290 respectively ahead of the 3,200 support, which coincides with [..]

Technical Analysis – Gold resumes ascent, steering above the Ichimoku cloud

Posted on August 19, 2020 at 12:35 pm GMT

Gold has nudged back above the Ichimoku cloud and over the simple moving averages (SMAs) after a bounce off the 200-period SMA, around 1,863, resetting the upward action. The precious metal has recouped a decent amount of the losses from the all-time high of 2,074.89 to 1,863 low, and continues to be aided by the now bullish Ichimoku lines. The commodity’s positive sentiment appears restored above the cloud, despite the fresh bearish crossover of the 100-period SMA by the [..]

Daily Market Comment – Wall Street eclipses all-time high, dollar gets a black eye

Posted on August 19, 2020 at 9:18 am GMT

S&P 500 closes at a new record, powered by slowing US cases and stimulus signals Dollar gets hammered, hits fresh two-year lows Sterling capitalizes most on the dollar’s troubles Today: FOMC minutes and Canadian inflation numbers Mission accomplished: Wall Street at new records There’s no stopping the US equity freight train. The S&P 500 erased all its losses since the pandemic rocked global markets to capture new records, pulling off its quickest ever return to new highs after entering a [..]

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