Technical Analysis

Technical Analysis – US 500 index unlocks fresh all-time highs before the end of the year

Posted on December 28, 2020 at 12:54 pm GMT

The US 500 stock index (cash) is exploring new all-time highs marginally above last week’s top of 3,730 following the approval of the US stimulus package, which averted a government shutdown and secured funding through September. The bullish move is well supported by the 20-day simple moving average (SMA) once again, though the muted reaction in the MACD, which continues to fluctuate below its red signal line, the flattening red Tenkan-sen, and the sideways trajectory in the RSI suggest that the positive [..]

Technical Analysis – AUDUSD recoups lost ground; resumption of uptrend in focus

Posted on December 28, 2020 at 10:27 am GMT

AUDUSD has almost recouped the downfall from the 2 ½-year high of 0.7638 despite the narrow trading the past two days in the four-hour chart. Although some weakness could be possible in the near term given the touch around the upper Bollinger band, market sentiment remains largely positive as the RSI holds comfortably above its 50 neutral mark despite the latest pullback, and the MACD continues to strengthen within the bullish territory and above its red signal line. The Ichimoku [..]

Technical Analysis – Gold clashes with hardened upside boundary

Posted on December 28, 2020 at 9:12 am GMT

Gold is in the process of confronting a fortified resistance zone from 1,896-1,907. This reinforced region comprises of highs, the 100-day simple moving average (SMA), the Ichimoku cloud and the overlapping descending trend line pulled from the all-time high. The horizontal blue Kijun-sen line and the mild downward slopes of the 50- and 100-day SMAs are promoting a more neutral-to-bearish picture. However, the bullish tone in the rising red Tenkan-sen line and the hiking 200-day SMA, as well as the [..]

Technical Analysis – GBPUSD resilient within bullish channel after Brexit trade deal

Posted on December 28, 2020 at 8:36 am GMT

GBPUSD held within the 1.3500 territory on Monday and slightly below its 2 ½-year high of 1.3623 following the endorsement of a skinny Brexit trade deal and the approval of the US stimulus package. From a technical perspective, the short-term bias remains tilted to the upside despite the rejection around the topline of the upward-sloping channel as the price continues to trade above its simple moving averages (SMAs) and the Ichimoku cloud. The momentum indicators are also in favor of [..]

Technical Analysis – GBPJPY crosses 140.30 border but will the bulls persist?

Posted on December 24, 2020 at 12:02 pm GMT

GBPJPY is pushing efforts to close above the noisy 140.30 ceiling that kept the bulls under control the past six weeks. The RSI and the MACD are endorsing the buying appetite in the market, though some caution is warranted as the former is approaching a restrictive trendline and the latter has yet to show a clear positive direction above its red signal line. Should the bulls persist, the pair could retest the 141.85 resistance region before meeting the crucial trendline from March’s lows around September’s [..]

Technical Analysis – GBPUSD favours upside; vicious appreciation boosts bias

Posted on December 24, 2020 at 11:35 am GMT

GBPUSD recently logged nine consecutive green candles and is quickly approaching the 31½-month high of 1.3624. The price found some footing just beneath the 200-period simple moving average (SMA) and then skyrocketed from there, restoring the bullish tone within the pair. The rising Ichimoku lines and the 50-period SMA are endorsing further gains, while the gradual upwards incline in the 100- and 200-period SMAs is preserving positive sentiment. Likewise, the short-term oscillators are skewed to the upside. The MACD, in [..]

Technical Analysis – EURUSD constrained within a triangle pattern

Posted on December 24, 2020 at 9:12 am GMT

EURUSD has been slowly regaining ground along the upper surface of the Ichimoku cloud and the base of a small symmetrical triangle in the four-hour chart, but a decisive close above the 1.2200 has been somewhat burdensome recently. The momentum indicators suggest depressed bullish pressures in the short run as the RSI and the MACD continue to hover near their neutral levels and the red Tenkan-sen line remains attached to the blue Kijun-sen. The topline of the triangle seen around [..]

Technical Analysis – USDCAD declines further below descending trend line

Posted on December 24, 2020 at 9:03 am GMT

USDCAD has been consolidating losses since the day it plunged from the more than four-year high of 1.4668. Currently, in the very-short-term, the price is hovering above the 32-month low of 1.2680 and is flirting with the 20-day simple moving average (SMA). The momentum indicators are suggesting that the sell-off may continue. The RSI is pointing down in the negative territory, while the stochastic posted a bearish crossover within its %K and %D lines. Additionally, in the Ichimoku indicator, the red Tenkan-sen line is flattening below the blue Kijun-sen [..]

Technical Analysis – AUDUSD restores bullish bias with foothold on mid-Bollinger band

Posted on December 24, 2020 at 8:39 am GMT

AUDUSD’s recent traction off the mid-Bollinger band at 0.7461 appears to have revived the upside tendency, which commenced from the 0.6990 low of November 2. In addition, the climbing simple moving averages (SMAs) are safeguarding the dominant bullish picture. Furthermore, positive momentum seems to be improving within the short-term technical indicators. The MACD has slid marginally below its somewhat stationary red signal line but remains deep in the positive region, while the rising RSI is approaching the 70 level. Additionally, [..]

Technical Analysis – WTI futures find floor at 20-day SMA; outlook bullish

Posted on December 24, 2020 at 7:50 am GMT

WTI crude oil futures stretched theirs seven-month old rally to a ten-month high of 49.39 on Friday before pulling slightly lower. The MACD seems to be losing momentum below its trigger line, the RSI is still hovering in the positive region following the pullback from the overbought territory, while the red Tenkan-sen line is flattening above the blue Kijun-sen, all signaling a more cautious trading in the short term. The market trend, however, is likely to hold on the upside as long as the price trades above its simple moving averages (SMAs) and the [..]

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