Technical Analysis

Technical Analysis – EURCHF maintains optimism drifting towards the Ichimoku cloud

Posted on May 26, 2020 at 2:08 pm GMT

EURCHF maintains a positive tone despite fading from the 1.0660 peak of May 18. The gradual upward gradient in the 100- and 200-period simple moving averages (SMAs) is currently backing the soar in price from the 57½-month low of 1.0504 to the 1.0660 high and is promoting advances. Moreover, the lower surface of the Ichimoku cloud and the rising 50-period SMA could provide footing to preserve an improving picture. The technical oscillators reflect mixed signals in directional momentum. Looking at the MACD [..]

Technical Analysis – USDCAD restrained near bottom of trading range

Posted on May 26, 2020 at 10:27 am GMT

USDCAD failed again to beat the mostly flattened simple moving averages (SMAs) and is currently headed to retest the lower boundary of the horizontal market at 1.3850. The short-term oscillators further reflect the latest downturn in price with the RSI having approached the 30 mark from the bullish section, and the stochastic lines declining from previous overbought regions into oversold territory. Moreover, the MACD – under weak directional momentum – has only just dipped below its red signal line and [..]

Technical Analysis – GER 30 index bullish at fresh highs; nears key obstacle

Posted on May 26, 2020 at 10:16 am GMT

The German 30 stock index (cash) found support at the 50% Fibonacci of the virus-led sell-off and crawled to a fresh high of 11,537 on Tuesday. With the price deviating above its shorter-term moving averages (SMAs) and the ichimoku cloud at a time when the RSI keeps sloping upwards, additional gains could follow in the short-term. Still, in breathing distance is the 61.8% Fibonacci of 11,585, which could halt the buying pressure, sending the pair back to the 50% Fibonacci [..]

Technical Analysis – EURGBP breaks sideways pattern, but can it break out?

Posted on May 26, 2020 at 9:44 am GMT

EURGBP spent more than a month trapped in a narrow range with a lower boundary at 0.8680 and an upper end at 0.8860, before breaching it to the upside. Yet, the upside move seems to have encountered powerful resistance near the 0.9000 handle and the pair has turned lower again, igniting doubts about whether this is a real breakout. Indeed, short-term oscillators reflect fading upside momentum, with the RSI pointing down within positive territory and the MACD looking ready to [..]

Technical Analysis – US 100 index within breathing distance of all-time high

Posted on May 26, 2020 at 8:36 am GMT

The US 100 stock index (cash) enjoyed a very powerful rebound in recent weeks, posting higher highs and higher lows above an upside support line drawn from the March lows, and is now approaching its all-time high of 9,751. Adding credence to the improving technical picture, the 50-day simple moving average (SMA) just crossed back above the 200-day one, forming a so-called ‘golden cross’. Short term oscillators are on board with a mostly positive outlook. The RSI – already above [..]

Technical Analysis – GBPUSD tests 50-day SMA; attempts to regain ground

Posted on May 26, 2020 at 7:30 am GMT

GBPUSD is currently up against the 50-day simple moving average (SMA) after pushing back over the 1.2213 level, that being the 38.2% Fibonacci retracement of the down leg from 1.3514 to 1.1410. Looking at the short-term oscillators, they display mixed signals in momentum. The MACD, though in the negative region and below its red signal line, looks to move back above it, while the RSI is creeping up towards its neutral threshold. However, the stochastic lines are somewhat in a [..]

Technical Analysis – EURJPY gathers bullish momentum; needs to clear 118.65

Posted on May 26, 2020 at 7:29 am GMT

EURJPY refused to return to the 117.00 area, reversing up instead to recoup the lost ground from the 118.50 peak on Tuesday. Technically, the short-term risk is currently looking positive as the price is trading above its 20- and 50-day simple moving averages (SMAs), while in momentum indicators, the RSI and the MACD are encouraging too as the former is comfortably hovering above its 50 neutral and the latter is gaining strength above its zero and signal lines. Yet, for a meaningful bullish correction [..]

Technical Analysis – WTI futures extend bullish move towards 10-week high

Posted on May 26, 2020 at 7:28 am GMT

WTI crude oil futures are coming close to break the ten-week high of 34.63, surpassing the 20- and 40-period simple moving averages (SMAs). The short-term upside tendency has begun from April 28 and is support by an ascending trend line and the bullish crossover of the SMAs. According to the technical indicators, the RSI is extending its upside momentum, while the MACD is ready to jump above its trigger line in the bullish region. In case of steeper increases the [..]

Technical Analysis – CADJPY edges sideways; positive picture dwindles

Posted on May 25, 2020 at 3:33 pm GMT

CADJPY remains mostly undecided since March 25, trading between 78.46 and 74.76. The mostly flat 50-day simple moving average (SMA) further suggests price’s directionless demeanour, while the downwards sloping 100- and 200-day SMAs back a negative outlook. The momentum indicators also reveal conflicting signals. The stochastic lines are bearish after deflecting off the 80 overbought mark. The RSI is improving slightly above its 50 level while the MACD, above its red signal line has risen over the zero line. If [..]

Technical Analysis – EURAUD appears flat below Ichimoku cloud

Posted on May 25, 2020 at 1:15 pm GMT

Technical Analysis – EURAUD appears flat below Ichimoku cloudEURAUD has been trading within a consolidation area over the last couple of weeks with upper boundary the 1.6895 resistance and lower boundary the 1.6610 support level. The pair is capped by the 20- and 40-period simple moving averages (SMAs) and the Ichimoku cloud in the 4-hour chart, suggesting that the bias seems to be neutral-to-bearish. However, the technical indicators are giving some signals for an upside retracement. The stochastic posted a [..]

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