Technical Analysis

Technical Analysis – US 30 index heads north in possible charge to new all-time highs

Posted on November 6, 2020 at 8:28 am GMT

The US 30 index (cash) created five straight positive days after the bounce off the 200-day simple moving averages (SMAs) around the 26,077 support level. Over the last four months, the price has been developing within a slightly bearish channel and the technical indicators are mixed. The MACD is standing near the zero level, while the RSI is extending its bullish movement above the neutral threshold of 50. Further increases could take the bulls towards the 29,224 resistance before revisiting the [..]

Technical Analysis – Gold gears up within 1,900 area; bullish but overbought

Posted on November 5, 2020 at 2:49 pm GMT

Gold switched to green on Thursday, speeding up within the 1,900 area, which barely could touch in the previous day. The precious metal is currently close to breaching the bar around 1,930, though the bulls seem to be running out of fuel as the RSI is approaching a key resistance zone slightly below its 70 overbought level, making a pullback in the price possible. The Stochastics are already above 80, further backing this view. Nevertheless, should the market find new [..]

Technical Analysis – EURUSD surges above 1.1800; indicators look bullish

Posted on November 5, 2020 at 12:20 pm GMT

EURUSD is surging to a new one week-high around the 1.1800 handle after it surpassed the Ichimoku cloud and the 1.1770 barrier. The 20-and 40-period simple moving averages (SMAs) are ready to create a bullish crossover in the short-term timeframe, while technical indicators are heading north. The MACD is extending its move above its trigger and zero lines, and the RSI is approaching the overbought zone. In the positive scenario where the price continues to expand above today’s high of [..]

Technical Analysis – AUDUSD hits familiar bullish spot; trend continuation eyed

Posted on November 5, 2020 at 9:12 am GMT

AUDUSD collected marginal gains on Wednesday and closed just around the 50-day simple moving average ((SMA) despite a volatile session within the 0.7100-0.7000 region. Earlier in the week, the 0.7030 support area managed to halt negative movements for the third time, increasing speculation that the downfall from the 0.7412 peak could be temporary. The recent bullish action could also reflect the end of an a-c corrective pattern and the start of a new bullish wave 1-5 according to the Elliot theory. Still, [..]

Technical Analysis – EURJPY wrestles with 50-MA; picture appears somewhat static

Posted on November 5, 2020 at 9:10 am GMT

EURJPY’s current consolidation is tackling the 50-period simple moving average (SMA) and upper Bollinger band after improving off a formed three-and-a-half-month low of 121.61. The downward sloping SMAs and their directing bearish mode promote further dampening in the pair. That said, the price stalemate is also reflected in the short-term oscillators, which confirm fairly oxygen-deprived momentum. The MACD, although soaring above its red trigger line has settled at the zero line, while the upward pointing RSI is zig zagging around [..]

Technical Analysis – EURJPY wrestles 50-MA; picture appears somewhat static

Posted on November 5, 2020 at 8:57 am GMT

Technical Analysis – WTI futures fails to build clear tendency

Posted on November 5, 2020 at 8:07 am GMT

WTI futures have been in a neutral mode over the last five months, trading with weak momentum near the simple moving averages (SMAs). On Monday, the price rebounded off the 33.44 support level, reaching the Ichimoku cloud. The MACD oscillator is flattening marginally below the zero level, while the RSI is sloping marginally down after it achieved the neutral threshold of 50. If the price successfully surpasses the SMAs, immediate resistance could come from the 41.93-43.71 zone before breaking the [..]

Technical Analysis – US 100 index explodes by 5% as Biden leads the polls

Posted on November 4, 2020 at 4:35 pm GMT

The US 100 stock index (cash) exploded by almost 5% on Wednesday to peak at 11,805 as the counting of election votes continues in the US, favoring a Biden win. Today’s rally has breached all the simple moving averages (SMAs) in the four-hour chart and flew above the Ichimoky cloud, retracing more than half of October’s sell-off. But the bullish action does not look to be exhausted yet as the Stochastics and the RSI have yet to admit overbought conditions. The 61.8% [..]

Technical Analysis – EURGBP downtrend converges to 200-EMA

Posted on November 4, 2020 at 3:03 pm GMT

EURGBP has been steadily swinging downwards within a tight descending channel since mid-September, bringing the 200-day exponential moving average (EMA), which successfully curbed negative movements in the same month, back under the spotlight. There is a potential for an upside correction in the short term as the price is hovering around the lower Bollinger band and the Stochastics are sloping upwards after posting a bullish cross within the oversold area. However, unless the 20- and 50-day EMAs, and the upper [..]

Technical Analysis – USDJPY cements floor within bearish channel

Posted on November 4, 2020 at 9:45 am GMT

USDJPY held a floor within the 104.00 – 104.20 area, keeping the downward pattern paused within the descending channel for the fourth month. Currently, the RSI is running towards its 50 neutral mark after bottoming out within the bearish area, suggesting that the bulls may not abandon the battle in the short-term. Adding to this encouraging signal is the price itself, which is stubbornly refusing to visit the lower band of the channel, hinting that a test of the upper band [..]

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