Technical Analysis

Technical Analysis – Gold crashes below 1800, hits to 2-month low

Posted on February 4, 2021 at 4:06 pm GMT

Gold has accelerated its decline, tumbling below the 1800 level on Thursday for the first time in two months. The precious metal is on track for a third straight day of losses but although the momentum indicators remain overwhelmingly bearish, there is a hint of some easing in the selloff in the short term. The RSI has slipped below the 30 oversold level and continues to trend lower. However, the stochastic oscillator is indicating the possibility of a bullish crossover [..]

Technical Analysis – USDJPY extends bullish breakout ahead of nonfarm payrolls

Posted on February 4, 2021 at 2:31 pm GMT

USDJPY continues to build its positive trajectory above the broken descending trendline, registering an almost three-month high of 105.33 on Thursday. There is no key obstacle in sight until the 105.45 – 105.65 region; therefore, expectations are for the rally to see further extension in the near-term as the momentum indicators in the four-hour chart keep promoting the bullish appetite in the market. The RSI has resumed its positive slope, and the MACD is regaining ground below its red signal [..]

Technical Analysis – EURJPY drifts in negative direction within a ranging market

Posted on February 4, 2021 at 12:56 pm GMT

EURJPY’s decrease from the 127.34 area appears paused, surrounded by the congested simple moving averages (SMAs). The falling red Tenkan-sen line and the topping blue Kijun-sen line are promoting the recent fading in price, though as things stand, the relatively neutral SMAs are backing no clear price direction. The short-term oscillators are also conveying mixed signals in directional momentum. The MACD is barely below its red trigger line and the zero mark, while the RSI is improving in bearish territory. [..]

Technical Analysis – EURJPY grips negative direction within a ranging market

Posted on February 4, 2021 at 12:39 pm GMT

EURJPY’s decrease from the 127.34 area appears paused, surrounded by the congested simple moving averages (SMAs). The falling red Tenkan-sen line and the topping blue Kijun-sen line are promoting the recent fading in price, while as the pair stands the relatively neutral SMAs are backing no clear price direction. The short-term oscillators are also conveying mixed signals in directional momentum. The MACD is merely below its red trigger line and the zero mark, while the RSI is improving in bearish [..]

Technical Analysis – WTI futures reach 1-year high; RSI looks overbought

Posted on February 4, 2021 at 9:58 am GMT

WTI futures reached another almost one-year high of 56.31 yesterday as the commodity extended its bull run above the 53.94 strong level. The bullish picture in the medium term is further supported by the MACD, which is rising and above its trigger line. Also, the RSI is holding in the overbought zone, suggesting a possible downside retracement. To the upside, there is immediate resistance at the 57.40-59.64 area, while above that, the next major resistance to watch is the 65.61 [..]

Technical Analysis – AUDUSD’s pullback dismissed by 50-day SMA; upside intact

Posted on February 4, 2021 at 8:58 am GMT

AUDUSD is finding some footing on the 50-day simple moving average (SMA) around 0.7605, after a near one-month retreat from the recently reached multi-year top of 0.7820. The Ichimoku lines are reflecting a pause in the climb, while the rising SMAs are preserving the bullish sentiment. The ascent seems to be unharmed as the short-term oscillators are conveying a pickup in positive momentum. The MACD is holding above the zero mark, despite having dwindled below its red trigger line, while [..]

Technical Analysis – GBPJPY bears resurface on shooting star candle

Posted on February 4, 2021 at 8:39 am GMT

GBPJPY charted a red shooting star candle during Monday’s session following the rejection near the topline of the bullish channel and the 144.00 level, justifying the subsequent selling pressure on the price. The downside reversal in the RSI and the softening momentum in the MACD is another alarm signal that the bears may dominate in the short term. The pair is currently looking for support around the 143.00 number, though a break at this point would not raise concerns among investors unless the decline ruins the upward trend [..]

Technical Analysis – EURUSD unlocks 1.2000 creating 2-month low

Posted on February 4, 2021 at 7:29 am GMT

EURUSD is losing considerable ground after the pullback from the 1.2350 resistance, heading towards the 1.2000 psychological number. The short-term simple moving averages (SMAs) are endorsing the bearish structure, as do the Ichimoku lines. In terms of technical indicators, the RSI is pointing down and is approaching the 30 level, while the %K line of the stochastic oscillator posted a bearish cross with the %D line. A drop below the 1.2000 handle could take the price until the 1.1915 support [..]

Technical Analysis – UK 100 index retreats below 50-day SMA; upside risks remain

Posted on February 3, 2021 at 2:14 pm GMT

The UK 100 index (Cash) retraced significantly from its 10½-month high of 6,955, plunging underneath the 50-day simple moving average (SMA), only to rebound near the previous trough of 6,312. The positive picture in the index, currently curbed by the 50-day SMA at 6,578, is holding onto hopes of returning higher. Also strengthening this view are the SMAs, which are maintaining a bullish demeanour. The short-term oscillators reflect the recent bounce and continue to favour the upside. The RSI, slightly below [..]

Technical Analysis – NZDUSD travels slightly above 20-period SMA; neutral bias in short term

Posted on February 3, 2021 at 9:46 am GMT

NZDUSD is moving horizontally over the last three weeks around the 20- and 40-period simple moving averages (SMAs), remaining above the long-term ascending trend line. The RSI is heading upwards with weak momentum, approaching the positive territory, however, the MACD is falling beneath its trigger line, mirroring the latest decline in the price action from the 33-month high of 0.7314. Immediate resistance would likely come from the 0.7245 barrier ahead of the 33-month high of 0.7314. If there is a successful break [..]

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