Technical Analysis

Technical Analysis – AUDUSD freezes putting pressure on positive sentiment

Posted on May 25, 2020 at 12:18 pm GMT

AUDUSD currently looks inactive between the mid-Bollinger band and the 50-period simple moving average (SMA) after pivoting down from a two-month high of 0.6615. The correction from the 17½-year low of 0.5506 also seems to have gradually slowed from the end of April, ahead of the 0.6684 peak. Additionally, the short-term oscillators mirror the stalled picture and the evaporation of directional momentum. The MACD, in the positive region, has adopted a horizontal tone beneath its red signal line and slightly [..]

Technical Analysis – US 500 finds roof at 11-week high; holds above SMAs

Posted on May 25, 2020 at 9:35 am GMT

The US 500 index (Cash) has finally reversed to the upside last Friday after flirting with the 50-period simple moving average (SMA) around 2,906. The upward pattern started at the end of March, but the market needs to beat the immediate resistance at 2,980 for more significant increases. Above that the market could meet the 3,140 – 3,205 resistance, taken from the high on March 3 and the inside swing low from January 31. The momentum indicators in the four-hour chart though [..]

Technical Analysis – EURUSD loses battle with 1.0890 and leaves sellers in charge within range

Posted on May 25, 2020 at 8:14 am GMT

EURUSD was again unable to close above the 1.0980 hurdle last week despite touching the 200-day simple average (SMA), with the price pulling back into the 1.0800 territory on Monday. The price is now located in the crossroads of the 20- and 50-day SMAs, around 1.0870, and should the lines fail to buffer the latest downfall, the door could initially open for the 61.8% Fibonacci of the up leg from 1.0635 to 1.1495, at 1.0830, and then for the crucial support [..]

Technical Analysis – Gold takes a breather after reaching a 91-month peak

Posted on May 25, 2020 at 7:08 am GMT

Gold appears to have somewhat weakened after plotting a fresh more than 7½-year high, stalling above the mid-Bollinger band at 1,716. Though the short-term oscillators back a very short-term weakness in the price, the simple moving averages (SMAs) still maintain their strong positive charge, dictating a bigger positive bearing. The MACD is still in the positive region but has dipped below its red signal line, while the RSI points down, hovering above the 50 threshold. The stochastics also back the [..]

Technical Analysis – USDJPY lies near ascending line; bullish profile in short-term

Posted on May 25, 2020 at 6:42 am GMT

USDJPY has been developing near the three-week ascending trend line over the last sessions, finding support at the 23.6% Fibonacci retracement level of the down leg from 111.70 to 105.98 at 107.33. The pair seems to be bullish in the very short-term timeframe and the technical indicators agree with this bias. The RSI, in the positive area, is sloping up, while the stochastic is approaching the overbought territory. In the event of more advances, the 107.82 level could act as [..]

Technical Analysis – AUDJPY pulls back, but still in positive mode

Posted on May 22, 2020 at 12:01 pm GMT

AUDJPY inched lower in the last couple of sessions, after touching a 6-week high at 71.00, but the series of higher highs and higher lows is still intact on the daily chart, keeping the broader outlook positive. Endorsing the improved sentiment, the 50-day simple moving average (SMA) has turned higher, while the pair is also trading above an upside support line. The latest pullback is also reflected in the RSI, which has turned lower but remains above its 50 line, [..]

Technical Analysis – GBPAUD bearish wave continues; 1.8524 eyed as oversold signals strengthen

Posted on May 22, 2020 at 11:08 am GMT

GBPAUD added new legs to the downward pattern it started in early March after piercing the 200-day simple moving average (SMA), with the developing bearish cross between the 20- and 200-day SMAs increasing the case for another extension. That said, a rebound in the price cannot be ruled out as the RSI and the Stochastics hint oversold conditions, while the MACD seems to be easing its negative momentum. Yet, to set the stage for an immediate upside reversal, the price needs to [..]

Technical Analysis – US 30 index fails to improve the bullish picture

Posted on May 22, 2020 at 9:52 am GMT

The US 30 index is creating a sideways channel with an upper boundary the 24,913 resistance and lower boundary the 22,900 support. The index is still developing above the 50-day simple moving average (SMA), however, the MACD oscillator is flattening in the positive region and the RSI is approaching the neutral region, endorsing the neutral mode in the short-term. Should the index make another run lower, it’s likely to meet support at the 50.0% Fibonacci retracement level of the downward wave [..]

Technical Analysis – USDCAD trendless within a sideways channel

Posted on May 22, 2020 at 7:58 am GMT

USDCAD is in a trendless state within a horizontal channel since the pullback from the 4-year high of 1.4667, confined by the 1.4218 top and the 1.3854 base. Technically, the neutral bias could stay in place in the short-term as the MACD is barely moving around its zero and signal lines, while the RSI has yet to show any sustainable recovery above the 50 level. Should the price extend its latest rebound above the 1.4011 mark, which is the 38.2% [..]

Technical Analysis – GBPJPY strictly capped below short-term SMAs; slightly bearish

Posted on May 22, 2020 at 7:12 am GMT

GBPJPY has been declining over the last six weeks, falling back below the 20- and 40-day simple moving averages (SMAs) and the 132.00 psychological level, being the 38.2% Fibonacci mark of the down leg from 144.95 to 124.00. According to the momentum indicators, the stochastics are posting a bearish crossover within the %K and %D lines below the overbought region, while the RSI is edging lower in the negative threshold. In case of steeper declines, the price could touch the [..]

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