Technical Analysis

Technical Analysis – EURGBP spikes to 3-week high; stochastic turns south

Posted on December 2, 2020 at 12:42 pm GMT

EURGBP skyrocketed to a new three-week high of 0.9043 earlier today, peaking slightly above the 61.8% Fibonacci retracement level of the down leg from 0.9148 to 0.8860 at 0.9037. The MACD oscillator is holding well above its trigger and zero lines, suggesting more gains, though the fast stochastic oscillator has already posted a bearish crossover within its %K and %D lines in the overbought territory, indicating a possible downside retracement. A close above the 61.8% Fibonacci could take the price towards the 0.9050-0.9070 resistance and then up to the [..]

Technical Analysis – Gold’s advances yet to conquer dominant bearish structure

Posted on December 2, 2020 at 10:06 am GMT

Gold is engaging the 1,825 level, in-line with the Ichimoku cloud’s lower surface, which happens to be the 61.8% Fibonacci retracement of the up leg from 1,670 to the all-time high of 2,074. Simultaneously thrusting above the 1,818 border coupled with the 50-period simple moving average (SMA), the bulls are still facing a commanding bearish structure, echoed within the falling slopes of the SMAs. The short-term oscillators are reflecting strengthening positive momentum. The MACD is some distance above its red [..]

Technical Analysis – NZDUSD surges to fresh 32-month high; strongly positive

Posted on December 2, 2020 at 8:26 am GMT

NZDUSD surged to a new 32-month high of 0.7072 earlier today, continuing the buying interest that started after the pullback off the 0.5470 support level. The price is developing well above the ascending trend line and the 20- and 40-day simple moving averages (SMAs). The MACD seems to be gaining momentum above its trigger line, while the RSI is still hovering around its 70 overbought mark, signaling more cautious trading in the short-term. The pair needs to overcome today’s peak to meet the 0.7160 resistance level, identified by the [..]

Technical Analysis – USDJPY lacks bullish signals, but still close to the channel resistance

Posted on December 2, 2020 at 8:12 am GMT

USDJPY has been moving sideways the past week within the 104.00 area and slightly below its 20-day simple moving average (SMA), showing no intention to escape the eight-month old bearish channel. The bearish cross within the downward-sloping 20- and 50-day SMAs continues to back the negative pattern in the price, while the RSI and the MACD have barely shown any persisting strength over the past week, keeping the case of a meaningful rally in the market muted. On the upside, [..]

Technical Analysis – EURCHF maintains positive structure, despite recent fading

Posted on December 1, 2020 at 1:42 pm GMT

EURCHF portrays an improving picture despite its latest retreat from the 1.0859 resistance mark. The rising simple moving averages (SMAs) retain a bullish tone while the merged Ichimoku lines are flattening in-line with the Ichimoku cloud, supporting dampened price action currently between 1.0794 and 1.0859. The short-term oscillators reflect waning positive momentum. The MACD, in the positive zone, is easing above its red trigger line, while the RSI is diving in bullish territory. Furthermore, the stochastic oscillator is reflecting negative [..]

Technical Analysis – WTI futures rebound off ascending line; still bullish in near term

Posted on December 1, 2020 at 10:35 am GMT

WTI crude oil futures are flirting with the ascending trend line, which has been standing over the last month in the 4-hour chart. The RSI indicator is pointing up in the bullish region, however, the MACD is still falling below its trigger line in the positive area. A rebound on the rising trend line could take the commodity towards the 45.78 resistance ahead of the nine-month peak of 46.26. More gains could lead the market until the 48.48 hurdle, taken [..]

Technical Analysis – USDCAD’s negative bias struggles near multi-year floor

Posted on December 1, 2020 at 10:31 am GMT

USDCAD is finding difficulty in returning under the lower Bollinger band around 1.2949, despite the picture remaining largely to the downside. The simple moving averages (SMAs) are maintaining their controlling bearish demeanour, while conflicting signals in near-term momentum are exhibited within the short-term oscillators. The MACD, in the negative region, has stepped marginally above its red signal line, while the RSI is pointing lower in bearish territory. That said, the gloomy tone of the stochastic oscillator is endorsing further losses [..]

Technical Analysis – GBPUSD re-challenges a familiar topside line

Posted on December 1, 2020 at 8:31 am GMT

GBPUSD has been struggling to claim the 1.3400 level and the familiar upper ascending line over the past week, which once again managed to resist bullish forces. Encouragingly, the red Tenkan-sen line and the 78.6% Fibonacci of the short 1.3481 – 1.2674 downleg came immediately to the rescue around 1.3315, providing another opportunity to the bulls. The recent rebound in the RSI and the soft bounce in the MACD, which is currently pushing efforts to return above its red signal line, keep the [..]

Technical Analysis – EURJPY shows signs for bullish retracement around 125.00

Posted on December 1, 2020 at 7:46 am GMT

EURJPY is rising above the descending channel and near the Ichimoku line, suggesting an upside retracement over the last couple of days. According to the simple moving averages (SMAs), the 20-day SMA completed a bullish crossover with the 40-day SMA, confirming the positive move around the 125.00 handle. The RSI indicator is approaching the overbought territory, while the MACD is jumping above its trigger and zero lines. Immediate resistance could come from the 125.07 barrier, which halted bullish moves several times in the past. A successful [..]

Technical Analysis – US 500 index maintains positive bearing; momentum waning slightly

Posted on November 30, 2020 at 3:07 pm GMT

US 500 index (Cash) is consolidating just below its newly formed all-time high of 3,674, finding some stability from its red Tenkan-sen line, marginally below at 3,601. The simple moving averages (SMAs) are maintaining an unbroken bullish tone endorsing further advances. However, the flattening out of the blue-Kijun-sen line and the stalling in the climb of the red Tenkan-sen line are signalling near-term fading in the pair. The short-term oscillators suggest some easing in the upward momentum. The MACD is [..]

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.