Technical Analysis

Technical Analysis – WTI futures rise above 200-SMA but broader outlook is neutral

Posted on October 8, 2020 at 1:30 pm GMT

WTI crude oil futures continue to rise above the Ichimoku cloud and the 200-period simple moving average (SMA), remaining inside a bullish move over the past five days. According to the RSI, positive momentum could push for further gains in the short-term as the indicator picks up steam above its neutral threshold of 50, while the stochastic oscillator is still gaining ground in the overbought area. In the positive scenario, where the price continues to expand above today’s high, a new top could [..]

Technical Analysis – USDCHF moves horizontally after strong fall around 0.93

Posted on October 8, 2020 at 9:47 am GMT

USDCHF has been moving sideways since the soft rebound off the 0.9132 support level earlier this month but is still unable to recover the losses made at the end of September. In the short-term, the market could shift to the upside if the RSI surpasses the 50 level and the stochastic continues the upside move after it completed a bullish crossover within the %K and %D lines. An extension to the upside and above the 0.9185 resistance and the 40-period [..]

Technical Analysis – AUDUSD consolidates, limited between 50- and 100-day SMAs

Posted on October 8, 2020 at 8:10 am GMT

AUDUSD is currently creeping sideways, constricted between the 50- and 100-day simple moving averages (SMAs), after the pullback from the near 25-month peak of 0.7413. The easing negative tones of the Ichimoku lines are aiding the horizontal price action, while the relatively bullish bearing of the 50-and 100-day SMAs defend a neutral-to-bullish structure. Nonetheless, the short-term oscillators reflect mixed signals in directional momentum. The MACD, in the negative region, is strengthening above its red trigger line towards the zero mark, [..]

Technical Analysis – NZDUSD bears remain in favour after double top creation

Posted on October 8, 2020 at 7:33 am GMT

NZDUSD could not sustain strength above 0.6600 as the 20- and 50-day simple moving averages (SMAs) and the blue Kijun-sen line blocked the way towards the 0.6796 peak, with the price registering a lower high in the daily chart instead. Note that the latter is following the creation of a bearish double top pattern. A forceful close below 0.6500 would make the short-term outlook cloudier and the momentum indicators cannot exclude that scenario at the moment. The RSI, although still not far below its [..]

Technical Analysis – EURUSD reverses up; indicators show bullish signal

Posted on October 8, 2020 at 7:18 am GMT

EURUSD has been in a positive tendency in the very short-term, climbing above the 20- and 40-period simple moving averages (SMAs) and the Ichimoku cloud. The momentum indicators are pointing to a neutral to positive bias with the RSI just above 50 and the MACD is trying to complete a bullish crossover with its trigger line in the bullish area. However, the red Tenkan-sen line is heading south, suggesting a downside reversal. Further gains should see the October 6 high [..]

Technical Analysis – EURGBP edges eastbound; upholds positive structure

Posted on October 7, 2020 at 2:34 pm GMT

EURGBP is currently tackling the mid-Bollinger band, preserving a neutral-to-bullish tone after bounces off the 50- and 100-day simple moving averages (SMAs), which followed a retreat from the recent five-and-a-half-month high of 0.9291. The dampened slopes of the 50- and 100-day SMAs continue to endorse the gradual positive incline in the pair. The short-term indicators reflect that positive momentum is strengthening. The MACD, although below its red trigger line, has held above zero, and appears set to reclaim it. Moreover, [..]

Technical Analysis – GBPJPY guided by bullish channel; negative risks not faded yet

Posted on October 7, 2020 at 12:11 pm GMT

GBPJPY landed nicely at the 50-period simple moving average (SMA) in the four-hour chart on Tuesday following the rejection near the 200-period SMA. The downside move did not break the solid ascending channel, neither it violated the upward pattern started from September’s bottoms, keeping the very short-term outlook positive. That said, the bears have not abandoned the game yet according to the RSI, which is struggling to gain momentum above its 50 neutral level. The weakness in the MACD is [..]

Technical Analysis – USDJPY radios improvement; advances display promise

Posted on October 7, 2020 at 8:28 am GMT

USDJPY is currently propelling over the controlling 50-day simple moving average (SMA) at 105.78, coupled with the cloud’s lower band, in an attempt to shift the stagnant bias. The Ichimoku lines are presently providing marginal backing to benefit the mostly sluggish price, while the gliding SMAs continue to preserve a mostly passive picture. Nonetheless, the short-term oscillators suggest that positive momentum is strengthening. The MACD, in the negative region, is above its red trigger line and is approaching the zero [..]

Technical analysis – US 500 index holds within bullish channel despite Trump’s comments

Posted on October 7, 2020 at 7:33 am GMT

The US 500 index (cash) gave up all its gains on Tuesday, which reached an almost one-month high of 3,430, to close lower following Trump’s stimulus comments. In the four-hour chart, the 50- and 100-period simple moving averages (SMAs) provided a strong footing, keeping the upward pattern in the very short-term picture intact and the price within an ascending channel. Should the 20-period SMA give way, the index could take a rest around the 3,412 resistance region before targeting the upper bound [..]

Technical Analysis – Gold recoups some losses; SMAs act as strong resistance

Posted on October 7, 2020 at 7:04 am GMT

Gold is recouping some of the losses it posted on Tuesday, hitting the 23.6% Fibonacci retracement level of the down leg from 2,015 to 1,848 at 1,887. The technical indicators seem to be mixed, as the RSI is sloping upwards in the bearish area, while the MACD is still holding beneath its trigger and zero lines with weak momentum. If the positive bias continues above the 23.6% Fibo, the price could first meet the 40-period simple moving average (SMA) at 1,896.50, before the 20-period SMA at [..]

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