Technical Analysis

Technical Analysis – AUDUSD exhibits directionless tone; bullish bias dwindles

Posted on October 29, 2020 at 9:24 am GMT

AUDUSD seems to have glided into a sideways market below the stable Ichimoku cloud after a gradual withdrawal from the 25-month top of 0.7413. The relatively flattened 50-and 100-day simple moving averages (SMAs), and the pause in the decline of the Ichimoku lines, both back the stalled picture in the aussie. The short-term oscillators also reflect the consolidation in price as they display conflicting signals in directional momentum. The MACD, a bit underneath its zero mark, is barely below its [..]

Technical Analysis – US 30 stock index crashes below 100-SMA; enters oversold area

Posted on October 29, 2020 at 8:51 am GMT

The US 30 index (cash) is set for its largest weekly loss since June after plummeting by almost 3% on Wednesday. The 100-day simple moving average (SMA) could not catch the fall as it notably did back in June and September, letting the price hit a fresh low of 26,499 below the Ichimoku cloud and slightly beneath its previous trough, a move that created question marks about the sustainability of the March uptrend. With the RSI and the Stochastics hinting at oversold conditions, an upside [..]

Technical Analysis – GER 30 index exits neutral zone below 200-day SMA

Posted on October 28, 2020 at 11:11 am GMT

The German 30 index (cash) slumped below the 200-day SMA and towards June’s lows on Wednesday, terminating the range-bound trading that held above that line in the past four months. Expectations are for the index to lengthen its downward pattern off the 13,460 peak as the 20-day SMA is trying to further deviate below the 50-day SMA and the MACD is resuming negative momentum below zero. Yet, with the RSI and the Stochastics fluctuating within the oversold territory, some stabilization [..]

Technical analysis – EURUSD slumps to meet trendline as downside risks heighten

Posted on October 28, 2020 at 9:35 am GMT

EURUSD is fast approaching the ascending trendline that has been navigating the market since the bounce off the 1.1611 ground as the Ichimoku cloud on the four-hour chart blocked the way to the upside and the 200-period simple moving average (SMA) failed to catch the fall. With the price trading below its SMAs, the RSI decelerating towards its 30 oversold level, and the MACD strengthening its negative momentum below its signal and zero lines, the short-term bias is seen skewed more [..]

Technical Analysis – USDJPY seeks to reactivate downtrend below key base

Posted on October 28, 2020 at 7:47 am GMT

USDJPY bears are set for another challenging battle with the tough 104.00-104.20 base, which has been strongly rejecting selling pressure since July, keeping the pair in a sideways move. The latest downfall has sent the price back below its downward-sloping simple moving averages (SMAs), while in momentum indicators, the RSI has yet to touch its 30 oversold mark, flagging additional negative corrections. Still, sellers may not take the wheel unless the 104.00-104.20 floor collapses, in which case the six-month old downward pattern [..]

Technical Analysis – Copper futures retrace below cloud; bullish bias persists

Posted on October 27, 2020 at 3:58 pm GMT

Copper futures’ recent pullback from the 28-month high of 3.213 appears to have been muted by the 100-period simple moving average (SMA) around 3.068. The retreat slipped under the 50-period SMA at 3.113 and the Ichimoku cloud, where the price seems to have slowed its downward pace. The falling red Tenkan-sen line suggests strengthening negative momentum, while the flattening blue Kijun-sen line is conveying a stalling in the withdrawal from the recent peak. The short-term oscillators reflect the slight improvement [..]

Technical Analysis – Amazon stock finds support at ascending line; strongly positive in long term

Posted on October 27, 2020 at 2:23 pm GMT

Amazon stock continues to move inside the Ichimoku cloud, remaining in a bullish tendency over the past seven months, stretching its upward pattern. According to the MACD, positive momentum is fading as it is moving lower in the short-term. The RSI is approaching the neutral threshold of 50, suggesting some gains again. In the positive scenario, where the price continues to expand above today’s high, a new top could be formed around 3,544.67, where the multi-month high is located. If the market [..]

Technical Analysis – EURCHF rests in Ichimoku cloud; fails to improve bullish picture

Posted on October 27, 2020 at 11:13 am GMT

EURCHF is failing to boost the upside direction in the very short-term as the price is standing within the Ichimoku cloud. The RSI is falling below the 50 level while the MACD is still holding above the trigger line. Moreover, the 20- and 40-period simple moving averages (SMAs) are moving sideways near the current market price. Should the pair manage to strengthen its positive momentum, the next resistance could come around the 1.0747 hurdle ahead of a rally towards the [..]

Technical Analysis – GBPUSD loses fuel above cloud; sideways move forming

Posted on October 27, 2020 at 9:03 am GMT

GBPUSD appears to have stalled its thrust above the Ichimoku cloud, as the pair pulls back from the 1.3176 level towards the 50-day simple moving average (SMA). The horizontal 50-day SMA and the flattening Ichimoku lines promote further ranging in the pair. The short-term oscillators reaffirm diminishing positive momentum. The MACD is slightly in the positive region and marginally above its red trigger line, while the RSI is slipping towards its neutral 50 mark. Moreover, the declining stochastic lines are [..]

Technical Analysis – EURJPY lacks direction but trendline is a ray of hope

Posted on October 27, 2020 at 8:45 am GMT

EURJPY could not close above its 50-day simple moving average (SMA) for the second time this month despite piercing it, pulling back into the 123.00 area. The above bearish action kept the market trajectory from the 127.06 peak on the downside, but the short-term ascending trendline that has been navigating the price since the drop to 122.36 is a ray of hope that the pair may attempt to regain ground and re-challenge its 50-day SMA and the 124.00 region. That said, the [..]

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.