Technical Analysis

Technical Analysis – UK 100 index bulls get a wake-up call; positive but overbought

Posted on November 11, 2020 at 4:41 pm GMT

The UK 100 stock index (cash) flew above the 200-day simple moving average (SMA) for the first time since February and closer to June’s high of 6,513, recording its second notable weekly gain and its biggest monthly increase in several years. The market is in overbought territory according to the RSI and the Stochastics, though the indicators have yet to set a downward shift, hinting that there is still some bullish steam in store. If that is the case, the [..]

Technical Analysis – GBPJPY recedes below 140.00; positive picture unbroken

Posted on November 11, 2020 at 3:29 pm GMT

GBPJPY is pulling back slightly from a two-month high of 140.28, following its latest surge upwards off the 136.00 mark. The rising simple moving averages (SMAs) and the recently completed bullish crossover by the 50-period SMA may reinforce the stalling ascent. Moreover, the strong positive tone of the climbing Ichimoku lines is further aiding this view. At the moment the short-term oscillators reflect some fading in positive momentum, suggesting a retracement may unfold before the climb resumes. The MACD, which [..]

Technical Analysis – NZDUSD advances past critical 0.6800 mark; picture bullish

Posted on November 11, 2020 at 11:13 am GMT

NZDUSD’s newfound strength off the 100-day simple moving average (SMA) has prodded the pair above the tough 0.6800 boundary, resulting in a 19½-month high of 0.6903 being realized. The gradual incline of the 100-day SMA and the upturn in the 200-day SMA, in addition to the bullish tone of the Ichimoku lines, endorse further advances. The short-term oscillators currently reflect intact positive momentum. The MACD is increasing above its red trigger line in the positive area, while the RSI is [..]

Technical Analysis – EURGBP recovers from fresh 6-month low

Posted on November 11, 2020 at 10:38 am GMT

EURGBP touched a fresh six-month low of 0.8860 today after the strong sell-off below the 0.8940 barrier. The MACD oscillator is falling below its trigger and zero lines with strong momentum, while the RSI is moving sideways near the 30 level. The 20- and 40-period simple moving averages (SMAs) are heading south after they posted a bearish crossover. Immediate support could come from the six-month trough of 0.8860 before falling further towards the inside swing high of May 4 at [..]

Technical Analysis – USDJPY’s strong jump suggests bullish actions

Posted on November 11, 2020 at 7:41 am GMT

USDJPY is developing slightly above the 23.6% Fibonacci retracement level of the down leg from 111.70 to 103.18 at 105.20 after the sharp buying interest from the new eight-month trough of 103.18, achieved on November 6. The price touched the upper boundary of the long-term descending channel, while a jump above it would shift the bearish structure to neutral. According to technical indicators, the MACD jumped above its trigger line in the negative territory, while the RSI is pointing marginally [..]

Technical Analysis – AUDUSD maintains bullish bias despite latest pullback

Posted on November 10, 2020 at 4:33 pm GMT

AUDUSD has retreated from the fresh high of 0.7339, which formed within a resistance section of peaks from back in September. The simple moving averages (SMAs) continue to convey improvements in the pair with their recently acquired bullish demeanour. The short-term oscillators are transmitting conflicting signals in directional momentum. The MACD, in the positive zone, is decreasing below its red trigger line, while the RSI’s descent in bullish territory is slowing ahead of the 50 threshold. That said, the stochastic [..]

Technical Analysis – WTI futures’ pullback finds traction off 200-MA

Posted on November 10, 2020 at 3:21 pm GMT

WTI futures are confronting the 41.00 handle after finding a foothold on the 200-period simple moving average (SMA). The bearish demeanour of the SMAs looks to be fading, while the rising 50-day SMA is assisting the commodity’s bounce off the 200-day SMA. The short-term oscillators are currently transmitting an increase in positive momentum. The MACD, some distance in the positive region, is rising above its red trigger line, while the RSI is retesting the 70 mark. Moreover, the %K line [..]

Technical Analysis – USDCAD crawls near 20-period SMA; continues to recover

Posted on November 10, 2020 at 2:40 pm GMT

USDCAD has been nicely recovering the downfall followed that took place in late October, crawling near the 20-period simple moving average and back into 1.3000 territory. From a technical perspective, the very short-term bias is viewed as positive, reflected by the improvement in the RSI and the MACD. The increasing distance between the red Tenkan-sen and blue Kijun-sen lines is another bullish signal. Yet only a decisive close above the resistance of 1.3108, can boost buying pressure towards the 200-period [..]

Technical Analysis – EURCHF spikes around 1.0800; indicators look overbought

Posted on November 10, 2020 at 9:44 am GMT

EURCHF is still stretching the positive move after the sharp rally on Monday, surpassing the 1.0800 psychological level. Also, the pair climbed beyond the 200-period simple moving average (SMA), shifting the bearish bias to bullish. However, the RSI and the MACD seems to be overbought, suggesting a possible downside correction. Immediate resistance could come from the 1.0815 barrier, identified on September 30 ahead of the 1.0830 powerful level. Surpassing these lines, the 1.0850 high and the 1.0876 spike, achieved on [..]

Technical Analysis – EURJPY shifts sideways as resistance ceiling blocks gains

Posted on November 10, 2020 at 9:36 am GMT

EURJPY was overwhelmed by buying interest yesterday that thrusted the pair back above the 100- and 50-day simple moving averages (SMAs). Yet, advances hit a wall and the pair now seems to be steering into a more sideways structure. The minor upward inclines of the 100- and 200-day SMAs are preserving the positive picture, while the falling 50-day SMA promotes negative sentiment. The short-term oscillators also reflect the pair’s recent freeze in positive momentum. The MACD, in the negative region, [..]

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