Technical Analysis

Technical Analysis – EURJPY’s upward trajectory under negative strain

Posted on June 4, 2020 at 1:54 pm GMT

EURJPY’s one-month positive incline is stalling ahead of the key 122.86 resistance border. Although positive momentum appears to be waning, the ascent from the 3½-year low remains intact, something also reflected by the upward slopes within the simple moving averages (SMAs). The short-term oscillators appear to be holding on to their positive tone, though slipping slightly. The MACD, deep in the positive region, has slipped below its red signal line but looks to move back above it, while the RSI [..]

Technical Analysis – USDCHF retests 3-month trough; neutral in near term

Posted on June 4, 2020 at 1:35 pm GMT

USDCHF faced a sharp selling interest over the last few hours, flirting with the 0.9590 support level. This move is suggesting more losses, confirmed by the RSI, which is heading south below the 50 leveld. Moreover, the red Tenkan-sen line fell beneath the blue Kijun-sen line and the price is holding well below the 20- and 40-period simple moving averages (SMAs). Yet, the stochastic is hovering in the oversold, signaling that any weakness could be short-lived. Stronger downside pressures could [..]

Technical Analysis – GER 30 index detects overbought signals near 3-month high

Posted on June 4, 2020 at 1:27 pm GMT

The German 30 stock index (cash) finished Wednesday’s session at three-month highs and comfortably above the 200-day simple moving average (SMA) following the close above the 12,000-round level. While the aforementioned notable move foresees the extension of the two-month old uptrend, the market needs first to overcome the 12,600 mark which is currently blocking the way up. Note that the momentum indicators are already located in overbought territory – the RSI above 70 and the Stochastics above 80, hence a downside [..]

Technical Analysis – EURUSD pulls back from 3-month top

Posted on June 4, 2020 at 11:00 am GMT

EURUSD is edging lower over the last four-hour sessions following the bounce off the three-month peak of 1.1256. The technical indicators are weakening in the positive areas. The MACD is slipping beneath the trigger line, while the RSI failed to hold above the 70 level and is approaching the neutral threshold of 50. Further declines could find immediate support at the 20-period simple moving average (SMA) currently at 1.1180, which holds slightly above the 1.1153 and the 23.6% Fibonacci retracement [..]

Technical Analysis – WTI builds confidence above Ichimoku cloud

Posted on June 4, 2020 at 8:38 am GMT

WTI oil futures pierced above the 100-day simple moving average (SMA) located at the 36.10 level, that being the 50.0% Fibonacci retracement of the down leg from 65.61 to 6.62. The commodity’s correction from the 6.62 bottom has breached the Ichimoku cloud and looks to be preparing to accelerate above a critical limiting region. Additionally, the rising Ichimoku lines and the turn up in the 50-day SMA may further assist this short-term view. The short-term oscillators presently seem to maintain [..]

Technical Analysis – AUDUSD dives below 5-month peak after significant bullish rally

Posted on June 4, 2020 at 7:09 am GMT

AUDUSD had a considerable advance over the previous three days, driving the price towards a new five-month peak of 0.6982 after the penetration of the long-term descending line, which had been holding since December 2018. Currently, the price is retracing towards the diagonal line, increasing the case for more losses if the line fails to act as support. According to the momentum indicators provide a mixed picture. The RSI, in the overbought zone, is suggesting a potential downside correction in the near term, as it is [..]

Technical Analysis – GBPJPY’s postponed rally attempts to resume gains

Posted on June 3, 2020 at 3:26 pm GMT

GBPJPY is in the process of breaking above the 136.93 level – that being the 61.8% Fibonacci retracement of the down leg from 144.94 to the 41½-month low of 123.97 – and the nearby 137.19 barrier. The pickup in price is starting to be reflected in the Ichimoku lines and the short-term oscillators. The MACD, deep in the positive region, is increasing above its red trigger line, while the RSI is beginning to improve in the overbought section. Furthermore, the [..]

Technical Analysis – EURGBP sellers take control, obstructing advances

Posted on June 3, 2020 at 2:04 pm GMT

EURGBP’s recent ascent to 0.9054 seems to have stalled, reversing back down to the 0.8889 level, that being the 50.0% Fibonacci retracement of the up leg from 0.8281 to the 11-year peak of 0.9498. The current neutral demeanour within the pair is also reflected in the flattened Ichimoku lines. Directional momentum appears to have dried up with conflicting signals now emerging from the short-term oscillators. The MACD, in the positive section, has slipped below its red signal line, while the [..]

Technical Analysis – US Dollar index plunges towards an almost 3-month low

Posted on June 3, 2020 at 1:16 pm GMT

The US dollar index plummeted to an almost three-month low of 97.24 earlier today, continuing the sell-off of the last six days. The price penetrated the 200-day simple moving average (SMA) and the 61.8% Fibonacci retracement level of the up leg from 94.50 to 103.80 at 98.06, opening the path for a bearish picture in the short term. The RSI turned lower near the oversold territory. At the moment, it has flattened near the 30 line in support of a [..]

Technical Analysis – Gold looking to rebound on 38.2% Fibonacci after pausing downtrend

Posted on June 3, 2020 at 10:32 am GMT

Gold prices are heading sharply lower and have hit the lower surface of the Ichimoku cloud after bouncing off the 100-period simple moving average (SMA). The commodity has paused its bearish move at the 38.2% Fibonacci retracement level of the up leg from 1,614 to 1,765 at 1,718. Looking at the technical indicators, the RSI is pointing slightly up in the negative zone, however, the MACD is decreasing below the zero and trigger lines. If the price fails to dive beneath the 1,716 support it could challenge [..]

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