Technical Analysis

Technical Analysis – GBPCHF weakens within sideways range

Posted on December 9, 2020 at 4:09 pm GMT

GBPCHF is facing downside pressure as it struggles to hold above the mid-Bollinger band around 1.1915. The pair has been stuck in a neutral phase since late March after it partially recovered from its all-time low of 1.1109. Further declines are likely in the short term as the RSI has dipped just below the 50 neutral level, while the MACD is slightly negative. However, the broader trend of the MACD is positive as it’s been steadily improving over the past [..]

Technical Analysis – EURGBP’s clear direction curbed as recent gains fade

Posted on December 9, 2020 at 1:16 pm GMT

EURGBP is receding beneath the 50-day simple moving average (SMA) at 0.9012, residing between the converging 100- and 200-day SMAs. The conflicting SMAs seem to be developing a somewhat sideways bearing, promoting the near-term directionless market. The opposing short-term oscillators echo the confusion in directional momentum. The negatively charged stochastic oscillator and the dipping RSI, barely above the 50 mark, are favouring moves to the downside. Yet, the MACD, which is holding above the zero line and its red trigger, [..]

Technical Analysis – EURAUD’s selling interest persists; still bearish

Posted on December 9, 2020 at 1:01 pm GMT

EURAUD has come under renewed selling pressure, falling back below the 23.6% Fibonacci retracement level of the down leg from 1.6826 to 1.6144 and the Ichimoku cloud. The technical indicators are endorsing the negative bias with the stochastic holding in the oversold territory and the MACD is losing momentum beneath its trigger and zero lines. Should prices decline, support could be found around the 1.6144 barrier, identified by the low on November 27. Then a step lower could challenge the [..]

Technical Analysis – NZDUSD restores bullish momentum; uptrend solid and intact

Posted on December 9, 2020 at 11:02 am GMT

NZDUSD pivoted higher early on Wednesday and towards its 32-month top of 0.7100, refusing to abandon the 0.7000 area for the time being. The RSI is also reluctant to exit the overbought zone, suggesting that although the market remains vulnerable to downside corrections, there is still some bullish fuel left in the tank. The upside reversal in the fast-stochastics and the fact that the price continues to fluctuate within the upper Bollinger area is also keeping the short-term bias tilted to the upside. [..]

Technical Analysis – USDJPY neutral-to-bearish under SMAs and trend line

Posted on December 9, 2020 at 8:33 am GMT

USDJPY is tackling the mid-Bollinger band at 104.31 as a sideways move confines the pair between the 103.65 level, which happens to be the 76.4% Fibonacci retracement of the up leg from 101.17 to 111.71, and the 104.75 highs. Nonetheless, the simple moving averages (SMAs) continue to exhibit the broader negative bias. The short-term oscillators are reflecting slight improvements in positive momentum with the MACD, in the negative region, creeping above the red trigger line, while the gradual hike in [..]

Technical Analysis – Gold edges south after bounce off 5-month low

Posted on December 9, 2020 at 7:29 am GMT

Gold prices rebounded from the five-month low of 1,764 at the end of November, taking the price above the short-term simple moving averages (SMAs), though, the metal is currently retreating. The RSI indicator is heading down after it touches the overbought territory, suggesting a downside pullback, while the stochastic oscillator is dipping, approaching the bearish zone. However, the red Tenkan-sen line is holding above the blue Kijun-sen line, indicating more gains. If there is an advance above the latest high, immediate resistance could come from [..]

Technical Analysis – Silver improves above MAs; broader bias neutral

Posted on December 8, 2020 at 4:03 pm GMT

Silver has stalled its recent propulsion above the simple moving averages (SMAs), as momentum has become muted. The climb from the two-month low of 21.88 appears intact and may receive assistance from the rising 50-period SMA, while the flattening 100- and 200-period SMAs back a more neutral picture. The short-term oscillators are reflecting mixed signals in directional momentum. The MACD, in the positive region, remains above its horizontal red trigger line, while the RSI is gradually gliding lower in the [..]

Technical Analysis – USDCAD pauses descent but maintains bearish tone

Posted on December 8, 2020 at 2:06 pm GMT

USDCAD is trading around the 1.2782 trough, aggressively formed in October of 2018, which is freezing its negative price action as it hits a 30½-month low of 1.2767. Nonetheless, the dictating simple moving averages (SMAs) are endorsing the predominant bearish direction. However, currently the short-term oscillators are displaying strengthening positive momentum. The MACD, some distance below zero, is rising above its red trigger line, while the RSI is climbing above the 30 threshold. Furthermore, the stochastic oscillator %K line has [..]

Technical Analysis – US Dollar index holds near 32-month trough; strongly negative

Posted on December 8, 2020 at 1:49 pm GMT

The US dollar index has been in a significant bearish tendency since March 3 and last week the price posted a fresh 32-month low of 90.42. Looking at momentum oscillators on the daily chart though, they suggest an upside pullback on price. The stochastic oscillator created a bullish crossover within its %K and %D lines in the oversold territory, while the MACD is flattening beneath its trigger and zero lines. Further declines may be on the cards if the index [..]

Technical Analysis – EURCHF fails to rebound; more losses are expected

Posted on December 8, 2020 at 11:01 am GMT

EURCHF attempted to break the 1.0778 support zone within this week, but its efforts proved unsuccessful as the line held the bears at bay. Nevertheless, the negative market structure consists of lower lows and lower highs in the very short-term, while the oscillators are confirming this view. The RSI is moving lower in the negative territory, while the MACD is strengthening its bearish momentum below its trigger and zero lines. Hence, the short-run risk is looking bearish at the moment and another retest of the 1.0778 support [..]

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