Technical Analysis

Technical Analysis – US 30 index begins new year with new record highs

Posted on January 8, 2021 at 10:29 am GMT

The US 30 stock index (Cash) is edging north, standing around the fresh record high of 31,252.85. The MACD, in the positive region, is holding near its trigger line, while the RSI is extending its move towards the overbought territory. The bullish 50- and 100-day simple moving averages (SMAs) could boost the price, sending the index to new uncharted peaks. In a bullish scenario, immediate resistance may develop from the 32,000 and 33,000 psychological numbers before meeting the 261.8% Fibonacci [..]

Technical Analysis – GBPAUD shapes floor around December’s low; 20-SMA eyed

Posted on January 8, 2021 at 10:05 am GMT

GBPAUD is heading for another battle with the 20-period simple moving average (SMA) in the four-hour chart after failing to close below December’s trough despite sliding to a fresh 2-year low of 1.7413. Although in the bearish territory, the RSI and the MACD continue to make higher lows towards their neutral marks, endorsing any potential upside correction in the price. Nevertheless, only a close above the 20-period SMA currently at 1.7500, and more importantly above the swing high of 1.7560, could [..]

Technical Analysis – AUDJPY bulls encounter long-term resistance line

Posted on January 8, 2021 at 8:56 am GMT

AUDJPY gathered additional positive traction towards a fresh two-year high on Friday after closing above the 79.00 mark, where the 200 simple moving average (SMA) is located in the weekly chart. While the bullish market structure and the upward direction in the RSI and the red Tenkan-sen line hold the short-term bias on the positive side, the bulls may need to push harder to surpass the support-turned-resistance line stretched from August 2019. A step above the resistance line currently at 80.90 could [..]

Technical Analysis – GBPJPY finds traction to preserve advances

Posted on January 8, 2021 at 8:37 am GMT

GBPJPY is confronting the resistance belt of 141.20-141.42 after once again finding strong footing off the mid-Bollinger band. The mild inclines in the 100- and 200-day simple moving averages (SMAs) are safeguarding the improving structure, while the upturn in the 50-day SMA is endorsing near-term positive price action. The short-term oscillators are conveying developments in positive sentiment, backing the upwards creeping tone. The MACD is increasing slightly above its horizontal red trigger line in the positive region, while the RSI [..]

Technical Analysis – USDCAD stands near 33-month low; still strongly bearish

Posted on January 8, 2021 at 7:50 am GMT

USDCAD extended its losses and is currently trading not far above the 33-month low of 1.2620 hit on Wednesday. The bias in the very-short-term also looks bearish as indicated by the RSI which is standing in the negative area. However, the stochastic is indicating an oversold market as the %K and %D line are positively aligned and are both moving above the 20 level. Further declines may meet support around the multi-month trough of 1.2620. Not far below, support could [..]

Technical Analysis – EURJPY advances despite weak directional momentum

Posted on January 7, 2021 at 4:38 pm GMT

EURJPY is logging a 22-month top today after overcoming the previously hindering 127.23 inside swing high. The slight gaining in the red Tenkan-sen line is endorsing the positive price action, while the gradual climbs in the simple moving averages (SMAs) are defending the progressing structure. The short-term oscillators are demonstrating minor improvements in positive sentiment. The MACD is growing above its red trigger line in the positive region, while the RSI is creeping higher towards the 70 mark. The positive [..]

Technical Analysis – USDCHF’s improvement curbed by cloud and 100-period MA

Posted on January 7, 2021 at 2:53 pm GMT

USDCHF remains negatively skewed on the four-our chart as the 100-period simple moving averages (SMAs) and the Ichimoku cloud capped the pair’s recent bounce from a formed almost 6-year bottom of 0.8757. The Ichimoku lines have become fairly stagnant, promoting frailty in recent positive sentiment. However, the steadfast bearish SMAs continue to dampen the pair’s outlook. The short-term oscillators are suggesting that the fresh positive drive is losing momentum. The MACD is stalling its ascent above its red trigger line, [..]

Technical Analysis – EURAUD falls to 21-month low; looks oversold

Posted on January 7, 2021 at 1:26 pm GMT

EURAUD has declined considerably after touching the 1.6415 level in December 2020. During Wednesday’s trading, it posted a 21-month low of 1.5767, while it is currently not far above that nadir. The flatten red Tenkan- and blue Kijun-sen lines serve as a testament to the negative short-term momentum that is in place. The MACD, though, is signaling a potentially oversold market; a near-term reversal should thus not be ruled out, while the stochastic is gaining ground, moving towards the overbought [..]

Technical Analysis – JPMorgan’s stock advances to the highest since early 2020

Posted on January 7, 2021 at 10:54 am GMT

JPMorgan Chase & Co stock has made considerable progress towards its 2019 record highs over the past two months, printing its latest peak slightly below the 133.00 mark on Wednesday. The market, however, seems to be sailing in overbought waters according to the RSI, which is set to meet a key resistance area above 70. Hence, some stabilization around the 133.00 number, where the price action stalled several times in early 2020, is possible. If the rally extends beyond that barrier, [..]

Technical Analysis – EURUSD loses some ground after touching 33-month top

Posted on January 7, 2021 at 9:42 am GMT

EURUSD has been underperforming over the last couple of sessions, testing the 20-period simple moving average (SMA), in the 4-hour chart. The RSI indicator is falling and is approaching the 50 level, while the MACD is trying to slip beneath its trigger line, remaining above the zero level. Moreover, the Ichimoku lines are flattening, suggesting a possible downside correction. Immediate support could come from the 20- and 40-period SMAs currently at 1.2290 and 1.2270, respectively. Slightly below these lines, the [..]

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