Technical Analysis

Technical Analysis – USDJPY hovers within SMAs; still stands in descending channel

Posted on November 25, 2020 at 7:04 am GMT

USDJPY is pointing slightly upwards, touching the 20- and 40-day simple moving averages (SMAs), remaining in a descending channel since March 3. According to the technical indicators, the MACD is approaching the zero line, holding above its trigger line, while the RSI is touching the neutral threshold of 50 in the near term. A successful increase beyond the 40-day SMA could find immediate resistance at the upper surface of the downward sloping channel at 105.35. If the bulls manage to [..]

Technical Analysis – EURCHF blocked as upside attempt breeds no result

Posted on November 24, 2020 at 3:49 pm GMT

EURCHF is struggling once again at the overwhelmingly toughened buffer zone of 1.0824-1.0847, containing numerous peaks since late July. The price today spiked touching the 1.0847 level, which happens to be the 61.8% Fibonacci retracement of the down wave from 1.1058 until 1.0504, before returning to its pre-consolidating demeanour. Nonetheless, the small upturn in the slopes of the simple moving averages (SMAs) may assist the price to nudge higher again. The short-term oscillators are reflecting a pause in directional momentum [..]

Technical Analysis – WTI futures reach 3-month high; positive risks not faded yet

Posted on November 24, 2020 at 1:45 pm GMT

WTI crude oil futures have been in a strong upside tendency since November 2, reaching a fresh three-month peak of 43.7 in the short-term timeframe. From a technical viewpoint, the price is still hovering beyond the 20- and 40-period simple moving averages (SMAs) and the Ichimoku cloud. The RSI indicator is edging north, approaching the overbought territory, while the MACD is extending its bullish structure above its trigger and zero lines. In the positive scenario where the price continues to [..]

Technical Analysis – EURJPY range bound; positive sentiment improves

Posted on November 24, 2020 at 10:03 am GMT

EURJPY is currently trading between the 50- and 100-day simple moving averages (SMAs) after forming a fresh low at 122.83. The pair seems to be stuck between the margins of the 121.61 low and the 125.23 level, which happens to be the 23.6% Fibonacci retracement of the up leg from 119.30 to 127.06. The gradual inclines in the 100- and 200-day SMAs are safeguarding advances, while the declining 50-day SMA is conveying weakness in the pair. The short-term oscillators are [..]

Technical Analysis – GBPUSD unlocks 3-month high; holds in ascending channel

Posted on November 24, 2020 at 8:18 am GMT

GBPUSD came close to breaking the eight-and-half-month high of 1.3487 on Monday, finishing the day at new three-month high slightly below the 1.3400 handle. Moreover, the price has been developing within an upward sloping channel since September 23, holding above the simple moving averages (SMAs) and the Ichimoku cloud. According to the RSI, the market could maintain positive momentum in the short-term as the indicator is positively sloped above its neutral threshold of 50, and the MACD oscillator is holding above its trigger and zero lines. On the [..]

Technical Analysis – AUDUSD suppressed by key resistance section

Posted on November 23, 2020 at 4:12 pm GMT

AUDUSD is retreating below the 50-period simple moving average (SMA) at 0.7290, after deflecting off the upper Bollinger band, currently encompassed in the resistance ceiling of 0.7324-0.7344. The advancing 100- and 200-period SMAs are promoting strength in the pair, while the 50-period SMA is transmitting a more neutral tone. The short-term oscillators mirror the recent weakening in the price. Strengthening negative momentum is displayed in the dipping of the RSI underneath its 50 mark and the declining stochastic %K line [..]

Technical Analysis – US 500 index edges east, capped by 50-MA

Posted on November 23, 2020 at 2:30 pm GMT

US 500 index (Cash) appears to be stuck trading between the 3,511 and 3,640 levels. The price seems to be consolidating underneath the 50-period simple moving average (SMA) after retreating from the upper boundary of the sideways move. The rising 100- and 200-period SMAs are sponsoring the positive picture, while the directionless Ichimoku lines and the flattening 50-day SMA are endorsing the short-term horizontal bias. The short-term oscillators are reflecting weak momentum but are slightly tilting to the upside. The [..]

Technical Analysis – Gold range bound; foundation floor under pressure

Posted on November 23, 2020 at 9:49 am GMT

Gold recently has been tiptoeing around the base of a more than two-month sideways market, after plunging below the Ichimoku cloud and the 50- and 100-day simple moving averages (SMAs). The slipping 50-day SMA and the unclear bearing of the horizontal Ichimoku lines, are promoting consolidation in the yellow metal. The short-term oscillators reflect conflicting signals in directional momentum. The MACD, in the negative region, is holding below its red trigger line, while the stochastic %K line is pushing over [..]

Technical Analysis – USDJPY finds strong support around 103.70; continues to drift lower

Posted on November 23, 2020 at 9:12 am GMT

USDJPY remains under pressure and risk is still to the downside as prices continue to drift lower from the 105.65 resistance. However, the pair is finding strong support around the 103.68 level. The short-term technical indicators are flattening and point to more weakness in the market. Looking at the 4-hour chart, prices are looking capped by the 20-period simple moving average (SMA) and the red Tenkan-sen line which are negatively aligned. The RSI indicator is holding in the negative region with weak momentum, while the [..]

Technical Analysis – EURUSD consolidates around 1.1900; indicators are flat

Posted on November 23, 2020 at 7:54 am GMT

EURUSD has been trading within a consolidation area of 1.1611-1.1960 over the last four months, remaining above the Ichimoku cloud and the short-term simple moving averages (SMAs) the last five days. According to the technical indicators, the RSI is moving sideways in the positive area and the MACD is standing above its trigger and zero lines with weak momentum. Immediate resistance could come from the 1.1915 barrier, tested several times in the past. Driving the market higher, the 1.1960 hurdle [..]

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.