Technical Analysis

Technical Analysis – NZDUSD skewed positive, yet momentum jammed

Posted on November 4, 2020 at 9:02 am GMT

NZDUSD looks motionless around the Ichimoku cloud and stuck between the 50- and 100-day simple moving averages (SMAs). Nonetheless, the slightly upward sloping Ichimoku lines and the 50- and 100-day SMAs are continuing to promote a rather positive tone. That said though, the short-term oscillators reflect a condition of weak directional momentum. The MACD is holding marginally above the zero line but below its trigger, while the downward-pointing RSI is flirting with its neutral threshold. However, the stochastics %K line [..]

Technical Analysis – EURCHF finds footing on 200-day SMA; looks to edge eastward

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

EURCHF improved slightly towards the 1.0716 mark, after finding some traction off the 200-day simple moving average (SMA) at 1.0670. The weakening slopes of the 50- and 100-day SMAs, and the fairly flat 200-day SMA, appear to be guiding the pair back into another confined sideways move around the 1.0716 level, that being the 38.2% Fibonacci retracement of the down leg from 1.1058 until 1.0504. The short-term oscillators also reflect the pickup in positive price action. The MACD, in the [..]

Technical Analysis – Dollar index slumps from one-month high; tests key support area

Posted on November 3, 2020 at 11:59 am GMT

The US dollar index (December futures) sharpened its pullback from a one-month high of 94.28 on Tuesday, landing near the 20-period exponential moving average (EMA) in the four-hour chart. The 50% Fibonacci of the 94.77 – 92.43 downleg and the 50-period EMA are also strongly supporting the market in the same neighborhood around 93.60, providing an opportunity for a rebound and preventing an outlook downgrade at the same time. That said, the negative momentum in the MACD and the weakening [..]

Technical Analysis – USDCAD plummets towards 1.3140; bears have control

Posted on November 3, 2020 at 11:03 am GMT

USDCAD plummeted towards the 1.3140 support level today with strong force, taking the momentum indicators lower. The MACD fell beneath its zero line and is distancing from its trigger line, while the RSI is approaching the oversold territory. Moreover, the red Tenkan-sen line dropped beneath the blue Kijun-sen line, shifting the bias to overwhelmingly negative. If the pair weakens further, the 1.3108 could provide the next support at the 1.3108 level. Breaching this trough, the next target is the 1.3080 barrier, taken from the low on [..]

Technical Analysis – WTI futures’ advance capped by 50-MA; bearish bias intact

Posted on November 3, 2020 at 9:31 am GMT

WTI oil futures’ progress off the formed five-month low of 33.63, pared losses of the recent two-week decline from the 41.87 peak as it stretched back to the 50-period simple moving average (SMA) today. The Ichimoku lines’ slower downwards pace reflects waning negative price action, while the falling 50- and 100-period simple moving averages (SMAs) divulge further backing of a deteriorating outcome. The short-term oscillators reflect mixed signals in directional momentum. The MACD is increasing above its red trigger line [..]

Technical Analysis – GBPUSD finds a pivot point but will it turn up?

Posted on November 3, 2020 at 8:43 am GMT

GBPUSD corrected backwards and below its shorter-term simple moving averages (SMAs) and the Ichimoku cloud, but the strong ascending trendline from May’s low of 1.2074 was there once again to support the market. The price printed a bullish hammer candlestick at that point on Monday, and it remains to be seen if it can stage an upside reversal in the coming sessions as the momentum indicators are somewhat conflicting at the moment. The RSI is beneath its 50 neutral mark, though marginally, [..]

Technical Analysis – EURJPY retreats towards fresh 3½-month trough

Posted on November 3, 2020 at 7:51 am GMT

EURJPY was plunging for five consecutive negative days, dropping beneath the 38.2% Fibonacci retracement level of the up leg from 114.40 to 127.10 and the 122.00 handle. The price reached a fresh three-and-a-half-month low of 121.60 on Friday, while the 20- and 40-day simple moving averages are continuing the falling move. Technically, the RSI indicator is pointing up around the 30 level, while the MACD is falling below the trigger line, extending its bearish structure. Moreover, the Ichimoku lines are [..]

Technical Analysis – USDJPY shifts sideways; broader picture bearish

Posted on November 2, 2020 at 3:25 pm GMT

USDJPY despite improving from the significant 104.00 support zone is transmitting a neutral-to-bearish tone, curbed by the gradual dip in the 100- and 200-period simple moving averages (SMAs). The flattening 50-period SMA is endorsing the horizontal price action, while mixed signals in momentum exist in the short-term oscillators. The MACD is increasing above its trigger and zero lines, while the RSI is attempting to maintain its positive drive above the 50 threshold. However, the stochastic oscillator has adopted a bearish [..]

Technical Analysis – US 500 index sets the stage for bullish moves

Posted on November 2, 2020 at 10:06 am GMT

The US 500 index (cash) found key support at 3,260, being the 23.6% Fibonacci retracement level of the up leg from 2,183.95 to 3,588.24 over the last couple of days. After the strong negative sessions in the preceding month, the index is trying to gain some ground with the RSI indicator sloping marginally up and the %K line of the stochastic oscillator, creating a bullish crossover with the %D line in the oversold territory. Upsides moves are likely to find resistance at the 200-day [..]

Technical Analysis – AUDUSD’s picture dampens; scale looks to tip negative

Posted on November 2, 2020 at 9:57 am GMT

AUDUSD is currently pushing off the 0.7000 handle after the curbing 200-period simple moving average (SMA) plunged the pair underneath the 50- and 100-period SMAs, the Ichimoku cloud, and the 0.7020 and 0.7005 supporting troughs. The steady downward slopes of the SMAs and the bearish demeanour of the Ichimoku lines sponsor further fading in the pair. The short-term oscillators express conflicting signals of momentum but are leaning slightly towards the downside. The MACD, in the negative region, has marginally pushed [..]

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