Technical Analysis

Technical Analysis – WTI Oil Futures cling on to bullish structure, for now

Posted on November 17, 2020 at 4:08 pm GMT

WTI Oil Futures remain in a downward pattern following the retreat from last week’s 2½-month top of 43.04. The price is battling to avoid a dip inside the Ichimoku cloud. But given the mixed picture portrayed by the momentum indicators, a slip into the cloud is very likely in the next few hours, which would confirm a shift in the bullish short- to-medium-term outlook to a neutral one. The negatively aligned stochastics continue to trend downwards and although the RSI [..]

Technical Analysis – USDCAD slips into neutral shoes as bearish pace stalls

Posted on November 17, 2020 at 2:22 pm GMT

USDCAD seems to be adopting a neutral structure after finding a foothold on the falling 50-day simple moving average (SMA) at 1.3063, following its recent pullback from the longer-term SMAs. The price is currently pushing up against the mid-Bollinger band at 1.3109, while all SMAs maintain their bearish tone. The short-term oscillators at the moment convey mixed signals in directional momentum. The MACD is presently located at the zero mark, after falling below its trigger line in the positive section. [..]

Technical Analysis – EURJPY sinks in descending channel in short-term

Posted on November 17, 2020 at 1:55 pm GMT

EURJPY has been declining in a descending channel over the last one-and-a-half-month, touching the 40-period simple moving average (SMA). The RSI indicator is heading south in the positive area, while the MACD is flattening near the trigger line in the short-term. Should prices continue to fall, immediate support could come from the 20-period SMA at 123.30 ahead of the 38.2% Fibonacci retracement level of the up leg from 114.40 to 127.10 at 122.21. A drop below this area could take [..]

Technical Analysis – GBPUSD regains optimism above Ichimoku cloud

Posted on November 17, 2020 at 9:29 am GMT

GBPUSD’s positive response appears to be strengthening as the pair is stepping higher from the minor pullback towards the Ichimoku cloud. The bounce on November 2 off the 100-day simple moving average (SMA) brightened the bias as it drove the price over the cloud, keeping bullish hopes alive. The rising red Tenkan-sen line conveys increasing momentum, while the MACD and the stochastic oscillator reflect a rise in sentiment. The MACD, in the positive area, is developing above its red trigger [..]

Technical Analysis – EURGBP stuck within 0.8900 zone and descending channel

Posted on November 17, 2020 at 8:56 am GMT

EURGBP remains stuck between the 20- and 200-day exponential moving averages (EMA) and the 0.8900 territory following the rebound at the bottom of a tight descending channel last week. The momentum indicators reflect a bearish-to-neutral risk as the RSI continues to hover slightly below its 50 mark and the negative MACD is set to deviate above its red signal line. A decisive rally above the channel’s upper boundary currently seen at 0.9030 would be ideal to develop positive sentiment and push resistance [..]

Technical Analysis – AUDUSD tests upper Bollinger Band but upside momentum flimsy

Posted on November 16, 2020 at 3:45 pm GMT

AUDUSD’s recent positive development appears to be struggling around the upper Bollinger band, whilst heavy resistance threatens overhead. That said, the simple moving averages (SMAs) are commanding a strong bullish tone backing further advances in the price. The short-term oscillators are communicating conflicting signals in directional momentum. The MACD is improving above its trigger and zero lines, while the RSI is rising in bullish territory. However, the stochastic oscillator has posted a bearish shift, promoting a pullback in price. If [..]

Technical Analysis – AUDUSD’s momentum flimsy; Bollinger band blocks climb

Posted on November 16, 2020 at 2:45 pm GMT

AUDUSD’s recent positive development appears to be struggling around the upper Bollinger band, whilst heavy resistance threatens overhead. That said, the simple moving averages (SMAs) are commanding a strong bullish tone backing further advances in the price. The short-term oscillators are communicating conflicting signals in directional momentum. The MACD is improving above its trigger and zero lines, while the RSI is rising in bullish territory. However, the stochastic oscillator has shifted bearish, promoting a pullback in price. If sentiment picks [..]

Technical Analysis – US 500 index heads up towards spike of all-time high

Posted on November 16, 2020 at 11:30 am GMT

The US 500 index (cash) is approaching the spike that it posted on November 9, reaching a fresh all-time high of 3,674.11. As the price jumped above the 3,589 barrier, the expectation is a retest of the record peak before moving into uncharted paths. The upside rally could then pause at psychological levels such as 4,000 and 4,500. The technical indicators are currently endorsing the bullish outlook as the RSI is heading towards the overbought threshold, while the stochastic %K line turned up after the decline [..]

Technical Analysis – EURUSD navigates north; range maintains stronghold

Posted on November 16, 2020 at 8:58 am GMT

EURUSD is piloting higher within a nine-week sideways market after having found some traction off the 50-day simple moving average (SMA). Despite the flattening 50-day SMA, which is endorsing the consolidating picture, the SMAs are sustaining their bullish demeanour, promoting more improvements in the pair. The short-term oscillators also transmit an increase in positive sentiment. The MACD is growing above its red trigger and zero lines, while the RSI is climbing in bullish territory. Furthermore, the stochastic oscillator encourages positive [..]

Technical Analysis – Gold lacks energy, trapped within a range

Posted on November 16, 2020 at 8:28 am GMT

Gold has barely recovered last week’s sharp downfall that drove the price towards September’s low of 1,848, lingering slightly below its 20- and 50-day simple moving averages (SMAs) and the Ichimoku cloud. The momentum indicators are currently painting a neutral-to-bearish picture for the short term as the RSI continues to lack direction and is marginally below its 50 neutral mark, while the MACD is also in a sideways move around its red signal line and within the negative area. A [..]

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.