Technical Analysis

Technical Analysis – USDJPY maintains green immunity; picture optimistic

Posted on February 3, 2021 at 9:26 am GMT

USDJPY is staging impressive gains reaching 105.17 after an initial green candle’s traction from 103.32 morphed into a rally, overcoming the downtrend line drawn from the 111.71 peak, and surpassing the Ichimoku cloud and the 100-day simple moving average (SMA) around 104.39. The bullish Ichimoku lines and the upturn in the 50-day SMA are endorsing the improving sentiment. The short-term oscillators are also transmitting robust signals in positive momentum. The MACD, in the bullish territory, is strengthening above its red [..]

Technical Analysis – EURGBP looks to escape from 8-month lows

Posted on February 3, 2021 at 8:29 am GMT

EURGBP is seeking shelter around the 0.8800 round-level and near eight-month lows after breaching the tough lower boundary of its seven-month-old range. Although the RSI and the MACD remain comfortably below their neutral levels, discouraging a meaningful rally, they cannot exclude the case of a rebound as the RSI seems to have found a bottom just above its 30 oversold level and the MACD is stabilizing around its red signal line. On the upside, however, there are several obstacles which could cancel any upside correction. The [..]

Technical Analysis – GBPJPY slips below 11-month high; positive in long term

Posted on February 3, 2021 at 7:51 am GMT

GBPJPY has been in a declining move over the last couple of days, after the upside rally towards the more than eleven-month high of 144.10. The price was capped by the 20-period simple moving average (SMA) in the 4-hour chart, while the technical indicators are confirming the recent bearish structure. The RSI is moving south in the positive region, while the MACD is standing beneath its trigger line and above the zero area. If selling interest persists, immediate support could [..]

Technical Analysis – EURCHF’s pullback unable to disrupt neutral-to-bullish tone

Posted on February 2, 2021 at 1:09 pm GMT

EURCHF’s recent improvements from the 1.0759 trough are being safeguarded by the 200-period SMA at 1.0805 and the 1.0800 boundary. The zig zagging simple moving averages (SMAs) are promoting the relatively neutral bias, while a forthcoming bullish crossover between the 100- and 50-period SMAs could repower recent gains in the pair. The short-term oscillators are reflecting the latest retreat in price, promoting a dampening picture, while the rising 50-period SMA is endorsing additional positive developments in the pair. The MACD, [..]

Technical Analysis – GER 30 index returns to the green zone after 6-week lows

Posted on February 2, 2021 at 11:16 am GMT

The German 30 index (cash) drifted northwards after refusing to close below 13,380 on Monday, despite sinking to a six-week low of 13,260 earlier in the day. The rebound has stretched beyond the simple moving averages (SMAs) in the four-hour chart, but currently the bulls seem to struggle to overcome the 61.8% Fibonacci level of the 14,133 – 13,260 downfall at 13,800, where the surface of the Ichimoku cloud is also positioned. With the Stochastics looking to change direction in [..]

Technical Analysis – WTI futures surge to 1-year high; back to positive view

Posted on February 2, 2021 at 10:24 am GMT

WTI crude oil futures rose to a fresh one-year high of 54.41 earlier today, continuing the strong rebound off the short-term uptrend line. The simple moving averages (SMAs) are returning higher, while the RSI is approaching the overbought territory. Moreover, the MACD is extending its positive momentum above its trigger and zero lines. Traders would be eager to engage in more buying activities if the price manages to surpass today’s high and move towards the nearby resistance at 54.62, registered in February 2020. [..]

Technical Analysis – GBPUSD bullish, but minor pullback freezes advances

Posted on February 2, 2021 at 9:20 am GMT

GBPUSD is stalling around the red Tenkan-sen line at 1.3677, after a small retreat from the recently reached multi-year high of 1.3758. Nevertheless, the bullish Ichimoku lines are portraying growing positive momentum, while the steadfast simple moving averages (SMAs) are all backing the firm broader uptrend. The short-term oscillators are conveying mixed signals in directional momentum but appear to favour an optimistic outcome. The MACD, some distance above zero, is floating beneath its flattening red trigger line, while the upwards [..]

Technical Analysis – USDCHF aims to end falling trend; eyes on 0.9015

Posted on February 2, 2021 at 8:41 am GMT

USDCHF charted an inverse head and shoulder formation at the bottom of its sell-off, where a six-year low of 0.8756 has taken the form of a bullish doji in early January, signalling the end of the bearish phase. The case of a trend reversal further strengthened on Monday after the price closed clearly above the neckline of the structure at 0.8920. The RSI and the MACD are backing the bullish appetite in the market as well, with the former gaining [..]

Technical Analysis – EURJPY stands above flat SMAs; bullish in long term

Posted on February 2, 2021 at 7:59 am GMT

EURJPY seems to be range bound, something also reflected in the flattening out of the slopes of the 20- and 40-day simple moving averages (SMAs). The directionless Ichimoku lines and the steadied cloud further reflect this view. That said, the short-term oscillators, although somewhat stalled, still lean towards a positive picture. The MACD, in the positive region, is holding above its trigger line, while the RSI hovers in bullish territory. If buying interest intensifies, resistance may originate from the eleven-month high of [..]

Technical Analysis – US 500 index’s bounce on cloud may reinforce uptrend

Posted on February 1, 2021 at 2:13 pm GMT

The US 500 index (Cash) appears to be finding some footing off the upper surface of the Ichimoku cloud after its withdrawal from the all-time high of 3,867. Although the dipping red Tenkan-sen line is feeding negative price action, the climbing simple moving averages (SMAs) are safeguarding the ascent. For the retraction to begin to undermine positive belief, the pair would have to recede towards the 100-day SMA at 3,576. The short-term oscillators are reflecting conflicting signals in directional momentum. [..]

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.