Technical Analysis

Technical Analysis – AUDUSD pauses bearish structure at Ichimoku cloud; penetrates uptrend line

Posted on May 4, 2020 at 9:55 am GMT

AUDUSD broke the rising trend line to the downside earlier today, challenging the Ichimoku cloud in the 4-hour chart. This movement is confirmed by the simple moving averages (SMAs) as they are ready to create a bearish crossover and the MACD oscillator is heading south in the negative zone. On the other hand, the RSI indicator is sloping upwards in the bearish zone, suggesting an oversold market. If the price rebounds on the cloud and move higher, it could find [..]

Technical Analysis – EURUSD returns below 1.0980 despite respectful rally

Posted on May 4, 2020 at 7:57 am GMT

EURUSD found buyers last week and turned up to re-challenge its recent swing highs. The bullish pressure, however, proved insufficient, with the price failing again to close above 1.0980 despite spiking to 1.1016 on Friday. On Monday, the pair started the session in the red and below the 50-day simple moving average (SMA), while also piercing the 1.0950 barrier underneath, which is the 38.2% Fibonacci of the upleg from 1.0635 to 1.1145. Should the bears finally dominate below that level, [..]

Technical Analysis – USDJPY continues its move within descending channel in near term

Posted on May 4, 2020 at 7:48 am GMT

USDJPY has been trading within a descending channel over the last month, hitting a fresh six-week low at 106.35 on April 29. The price is currently capped by the simple moving averages (SMAs) in the 4-hour chart, while the RSI is marginally pointing up in the negative zone. However, the stochastic oscillator is ready for a bearish cross within its %K and %D lines above the oversold area. A continuation of the selling mode would drive the market to retest [..]

Technical Analysis – Gold appears to be gaining confidence

Posted on May 4, 2020 at 6:45 am GMT

Gold is currently resting at the mid-Bollinger band around 1,700 while still confined between the boundaries of 1,660 and 1,739. The short-term oscillators further reflect a neutral-to-bullish bias, while the rising simple moving averages (SMAs) continue to be positively charged suggesting further advances to come. The MACD and the RSI display the pause in the market. The MACD, deep in the positive region, has dipped below its red trigger line but appears to be flattening, while the RSI, bouncing near [..]

Technical Analysis – GBPAUD bulls retake control around the 200-day SMA

Posted on May 1, 2020 at 12:17 pm GMT

GBPAUD is currently pushing up against the 100-day simple moving average (SMA) at 1.9460 after a bounce near the 200-day SMA’s region, which ultimately kept intact the medium-term positive outlook. Looking at the short-term oscillators, they paint an optimistic picture. The MACD is in the negative region and below its red trigger line but looks to move back above it, while the RSI is rising towards its neutral threshold. Furthermore, the 50- and 100-day SMAs maintain a positive tone despite [..]

Technical Analysis – EURJPY maintains negative tone despite bulls’ efforts

Posted on May 1, 2020 at 10:39 am GMT

EURJPY is currently stuck around the 117.24 level, that being the 50.0% Fibonacci retracement of the down leg from 119.03 to the 3-year low of 115.44. The pause trails a pivot at the 200-period simple moving average (SMA) after the recent aggressive thrust upwards from the 115.44 low overran the 50-and 100-period SMAs. Looking at the short-term oscillators, the MACD, in the positive region is increasing above its red trigger line, while the RSI and stochastics back the bigger prevailing [..]

Technical Analysis – NZDUSD cautiously bullish above very short-term trend line and MAs

Posted on May 1, 2020 at 7:03 am GMT

NZDUSD seems to have retraced slightly to the 0.6074 level – that being the 61.8% Fibonacci retracement of the down leg from the 0.6447 high to the 11-year low of 0.5468 – after the recent appreciation of the price above the simple moving averages (SMAs) and the Ichimoku cloud. The decline from 0.6175 appears to be finding some footing around the vicinity of a supportive trend line. Further backing for this view comes from the flattened Kijun-sen line, as well [..]

Technical Analysis – US 30 stock index may have more bullish fuel in store

Posted on April 30, 2020 at 2:04 pm GMT

The US 30 stock index (cash) closed positive above the Ichimoku cloud on Wednesday, increasing speculation that the short-term uptrend could further strengthen. A bullish cross of the 20-day simple moving average (SMA) with the 50-day SMA may add to the sentiment if it is finally completed. The fact that the price has yet to touch the upper Bollinger band at a time the MACD keeps rising above its zero and signal lines is also hinting that the next move [..]

Technical Analysis – Could WTI oil futures confirm a bullish double bottom structure

Posted on April 30, 2020 at 10:30 am GMT

WTI oil futures for June delivery have been moving back and forth since the plunge to 6.62 last week, forming a double bottom pattern around the 10.00 level on the four-hour chart. The bullish reversal pattern, however, needs a confirmation above the neckline that is placed around the 18.00 mark to turn valuable. Currently, the momentum indicators are painting a positive picture for the short-term as the MACD is strengthening in the positive area for the first time since early April, the RSI is also comfortably within the [..]

Technical Analysis – GBPJPY seems to have found a roof near 133.00

Posted on April 30, 2020 at 9:11 am GMT

GBPJPY has been in a descending move since it touched the one-month peak of 135.70. Currently, the price is revisiting the 23.6% Fibonacci retracement level of the down leg from 135.70 to 124.00 at 132.97 – which stands near the short-term falling trend line and the Ichimoku cloud. Looking at the technical indicators, the MACD oscillator is weakening its negative momentum and is approaching the zero line, while the RSI indicator is hovering near its neutral threshold of 50. Both [..]

Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. XM accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The research and analysis does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it.

It has not been prepared in accordance with legal requirements designed to promote the independence of research, and as such it is considered to be marketing communication. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We aim to establish, maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence, which requires our employees to act in our clients’ best interests and to disregard any conflicts of interest in providing our services.

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losing all of your invested capital, so please make sure that you fully understand the risks involved.

How can we help?

Live Chat Terms