Technical Analysis

Technical Analysis – EURJPY tackles mid-band to accelerate pullback

Posted on May 12, 2020 at 7:20 am GMT

EURJPY is attempting to conquer the mid-Bollinger band around 116.30 and the nearby 116.51 high after building confidence in the previous few sessions. The positive price action from the freshly formed 3½-year low of 114.423 is also reflected in the short-term technical oscillators. The MACD, while deep into the negative region has pushed above its red trigger line and at the same time the bullish stochastics head for the 80 mark. Moreover, the RSI has risen towards its 50 threshold, [..]

Technical Analysis – GBPUSD double top formation at 1.2640; neutral bias

Posted on May 12, 2020 at 6:49 am GMT

GBPUSD appears to have posted a double top at the 1.2640 resistance and any violation beneath the 38.2% Fibonacci retracement level of the down leg from 1.3515 to 1.1409 at 1.2212, could confirm the pattern, shifting the bias back to bearish. In terms of momentum indicators, the MACD oscillator is endorsing the neutral outlook in the daily timeframe, while the RSI is approaching the horizontal 50 neutral level. Noteworthy, the price is trading within the 20- and 40-day simple moving averages (SMAs) [..]

Technical Analysis – NZDJPY struggles to gain ground past upper band of cloud

Posted on May 11, 2020 at 1:46 pm GMT

NZDJPY appears to have somewhat adopted a horizontal demeanour, something also reflected by the directionless Ichimoku lines. As positive momentum is barely present, price is finding difficulty in moving above the Ichimoku cloud’s upper band. Turning to the short-term oscillators, they too paint a picture of weak momentum. The MACD is marginally below its zero point and only just above its red signal line, while the RSI is turning flat slightly above its neutral mark. That said, traders need to [..]

Technical Analysis – AUDUSD retreats after flirting with 7-week peak

Posted on May 11, 2020 at 1:29 pm GMT

AUDUSD penetrated to the downside the short-term rising trend line in the previous days, but advanced to meet it again before the bearish movement today. A trading range has been created after the touch again on the seven-week high of 0.6570 with lower boundary the 0.6378 barrier. The price is flirting with the 20-period simple moving average (SMA) ahead of the flat 40-period SMA, while the technical indicators are confirming the recent negative bias with the RSI approaching the 50 [..]

Technical Analysis – US 500 index’s advances under pressure

Posted on May 11, 2020 at 9:38 am GMT

US 500 stock index (Cash) is struggling to overcome the 2,935 level, that being the 61.8% Fibonacci retracement of the down leg from the all-time high of 3,396.64 until the 2,183.95 low, after acquiring some footing on the Ichimoku cloud’s upper band at 2,791. The positive tone of the Ichimoku lines and the short-term oscillators further back an advancing view. The MACD, in the positive section, is holding just above its red trigger line, while the RSI is creeping higher [..]

Technical Analysis – USDJPY touches upper boundary of descending channel above 107.00

Posted on May 11, 2020 at 9:15 am GMT

USDJPY has reversed back up again, above 107.00, after finding support at the eight-week low of 105.95 achieved last week. The price is in the process of penetrating the downward sloping channel to the upside, shifting the bearish structure to neutral. The price is ready to touch the 23.6% Fibonacci retracement level of the down leg from 111.70 to 105.95 at 107.33 and the 107.50 resistance, remaining above the short-term simple moving averages (SMAs). Furthermore, the technical indicators are confirming this view with the RSI approaching [..]

Technical Analysis – Gold preserves positive composure

Posted on May 11, 2020 at 6:57 am GMT

Gold is trading around the mid-Bollinger band at 1,707 after fading for nearly a month from the multi-year high of 1,746.95. The precious metal seems to be lacking direction as it plots lower highs and higher lows. Yet, the technical oscillators and the upward slopes in the simple moving averages (SMAs) appear to support a neutral-to-bullish picture for now. The MACD, has remained in the positive section but is below its red signal line, while the RSI continues to hover [..]

Technical Analysis – EURUSD in a sidelines mode; SMAs act as strong resistances

Posted on May 11, 2020 at 6:48 am GMT

EURUSD has been on the sidelines since the end of March as it consolidates within a channel with an upper boundary at the 1.0985 resistance and a lower boundary at the 1.0770 support level. Currently, the pair is capped by the 40-day simple moving average (SMA) and the mid-level of the Bollinger band, which is the 20-day SMA. From a technical viewpoint, the MACD oscillator posted a positive divergence in the preceding sessions, with the market creating lower lows and the oscillator continuing its upside movement. This picture seems to be a [..]

Technical Analysis – USDMXN completes pennant formation after aggressive rally

Posted on May 8, 2020 at 11:37 am GMT

USDMXN seems to be completing a pennant formation on the daily chart after skyrocketing by almost 30% to enter the 25.00 zone in March. The pattern is expected to signal the continuation of the positive trend if the bulls manage to close decisively above the upper trendline. In this case, traders could look for resistance near the 25.00 round level, while the 25.40 barrier, where the rally hit a wall in late March, will be closely watched before all eyes [..]

Technical Analysis – NZDUSD exhibits tendency for further advances

Posted on May 8, 2020 at 11:00 am GMT

NZDUSD is extending price action above the 100- and 50-period simple moving averages (SMAs) after recently finding some traction at the 200-period SMA. Moreover, the slight incline in the SMAs backs the recent improvement in the pair. Turning to the short-term oscillators, they are suggesting that the price may continue to advance for now. The MACD is strengthening in the positive region above its red signal line, while the rising RSI approaches the 70 overbought mark. Moreover, the stochastic lines [..]

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