Technical Analysis

Technical Analysis – EURGBP bulls may stay in play in short-term

Posted on May 18, 2020 at 9:52 am GMT

EURGBP stretched Friday’s aggressive rally to a new 1 ½-month high of 0.8957, and although some weakness in the price is visible at the moment, optimism for additional gains remains as the bulls have previously successfully breached the 50-day simple moving average (SMA) while the RSI and the MACD continue to trend up in the bullish area. The 38.2% Fibonacci retracement level of 0.8986 of the latest downfall is now the nearest resistance to block upside movements. Breaking that wall, [..]

Technical Analysis – USDJPY flirts with 23.6% Fibonacci; lacks direction in near term

Posted on May 18, 2020 at 9:11 am GMT

USDJPY successfully surpassed the short-term simple moving averages (SMAs) in the 4-hour chart but the outlook remains neutral as it failed to jump above the 23.6% Fibonacci retracement level of the down leg from 111.70 to 105.95 at 107.33. The momentum indicators are moving with weak momentum too, with the MACD hovering slightly above the zero line and the RSI pointing marginally up. If there is an upside move above the 23.6% Fibo of 107.33, immediate resistance could come from [..]

Technical Analysis – US 500 index breaches MAs, attempts to resume climb

Posted on May 18, 2020 at 7:20 am GMT

US 500 stock index (Cash) in previous sessions found a foothold at the advancing 200-period simple moving average (SMA) currently at the 2,789 level, that being the 50.0% Fibonacci retracement of the down leg from the all-time-high of 3,396.64 till the 39½-month low of 2,183.95. At present, the price has pierced above the mostly flat 50- and 100-period SMAs and the positive move seems to be backed by the short-term oscillators. The MACD in the negative zone is above its [..]

Technical Analysis – EURUSD making baby steps within congested area

Posted on May 18, 2020 at 7:15 am GMT

EURUSD has been in a tighter range the past week, maintaining its two-month old trendless style within the 1.0770 and 1.0890 borders while also being unable to sustain strength above the 20-day simple moving average (SMA). With the RSI and the MACD showing no sign of improvement in the bearish area, there is little optimism for a meaningful rally. Still, some buyers could return to the market if the pair manages to clear the 20-day SMA currently approaching the 61.8% Fibonacci [..]

Technical Analysis – Gold unlocks new 7½-year high; positive outlook on cards

Posted on May 18, 2020 at 6:45 am GMT

Gold prices surged to a fresh seven-and-a-half-year high of 1,763.58 earlier today, shifting the outlook from neutral to bullish. The strong upside rally is confirmed by the technical indicators which are gaining momentum. The MACD recorded a bullish crossover with its trigger line in the positive area while the RSI is heading higher towards the overbought zone. Also, the short-term simple moving averages (SMAs) are continuing the price action, acting as critical supports. In case of more positive movements, the [..]

Technical Analysis – AUDCAD bulls may challenge long-term downtrend above 0.9150; 20-day SMA eyed for support

Posted on May 15, 2020 at 11:14 am GMT

AUDCAD has been showing a clearer bearish tendency since the start of 2018 which could now come into question if the price manages to extend its latest rebound above the swing high of 0.9150. The 50% Fibonacci of the downleg with a peak at 1.0241 and a trough at 0.8063 is also placed around this point, adding extra importance to the area. On the daily chart the RSI and the MACD are not in favor of additional upside corrections as both indicators are losing [..]

Technical Analysis – NZDUSD declines after hitting 0.6015; seems bearish in near term

Posted on May 15, 2020 at 10:07 am GMT

NZDUSD looks to be mostly bearish after a descent from the 0.6155 resistance level, returning the price back below the simple moving averages (SMAs) and the Ichimoku cloud. The short-term oscillators reflect a stall in the negative momentum. The MACD, in the negative area, has moved above its red trigger line, while the RSI hovers below its neutral mark, pointing slightly up. That said, a conflicting bearish picture is currently displayed within the Ichimoku lines and all the SMAs. If [..]

Technical Analysis – US 30 index’s ascent slows, forming head and shoulders pattern

Posted on May 15, 2020 at 9:37 am GMT

US 30 stock index’s (Cash) one-month ascent from the multi-year low of 18,170 seems to have eased, forming a head and shoulders pattern on the daily timeframe. The price is currently testing the neckline of the pattern barely under the 23,869 level, that being the 50.0% Fibonacci retracement of the down leg from the all-time-high of 29,582.61 to the 40½-month low of 18,170. The short-term oscillators appear to be leaning towards the downside, accompanying the already negatively charged simple moving [..]

Technical Analysis – GBPJPY appears to pause before snowballing negative

Posted on May 15, 2020 at 6:43 am GMT

GBPJPY although presently finding temporary footing, faded back below the restricting 50-day simple moving average (SMA) currently around 132.32 over the past week. Aiding the forthcoming negative price action are the short-term oscillators and the near completion of a bearish crossover of the 200-day SMA by the 100-day one. The MACD, in the negative region, has slipped below its red signal line while the RSI is hovering mid-way in the bearish territory. That said, the stochastic %K line reflects the [..]

Technical Analysis – USDCAD maintains neutral-to-bearish bias below SMAs

Posted on May 15, 2020 at 6:36 am GMT

USDCAD is trading not too far from the 20- and 40-day simple moving averages (SMAs), which are moving horizontally over the last sessions. The near-term bias is looking neutral-to-bearish as the RSI is flatlining marginally above the 50-neutral level, while the stochastics are pointing south and the %K and %D lines are ready for a bearish cross in the next few sessions. Should USDCAD make another move lower, it’s likely to meet support at the immediate 38.2% Fibonacci retracement level of the up [..]

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