Technical Analysis

Technical Analysis – GBPJPY pauses near 23.6% Fibo; lacks direction

Posted on September 30, 2020 at 8:05 am GMT

GBPJPY has paused the downside movement at the 23.6% Fibonacci retracement level of the down leg from 142.70 to 133.00 at 135.32 in the very short-term. The MACD oscillator dipped below its trigger line in the positive zone, while the RSI is slipping above the 50 level. However, the 20- and 40-period simple moving averages (SMAs) completed a bullish crossover, acting as strong support for the bulls. A rebound on the 23.6% Fibo of 135.32 could take the price until [..]

Technical Analysis – NZDUSD pauses decline after double top; bearish threats still in play

Posted on September 30, 2020 at 6:55 am GMT

NZDUSD got trapped within the 0.6500-0.6600 zone after breaking below a supportive trendline and confirming a double top formation around 0.6796. It is worth noting that the 200 simple moving average (SMA) is also placed around these two peaks in the weekly chart. Although the rebound in the Stochastics favours bullish actions in the short-term, the RSI, having posted a series of lower highs, is still below its 50 neutral mark. Adding to the bearish signals is the MACD which has been trending downwards [..]

Technical Analysis – USDJPY finds wall below 106.00; still bearish bias

Posted on September 30, 2020 at 6:39 am GMT

USDJPY has been in a negative direction over the last six months, however, the rebound at the six-month low of 104.00 drove the pair higher, finding strong resistance at the 40-day simple moving average (SMA) and the 105.80 resistance. The latter level is the 23.6% Fibonacci retracement level of the down leg from 111.70 to 104.00. The momentum indicators are hinting at neutral movement as the MACD is gaining some ground above its trigger line but near its zero level [..]

Technical Analysis – USDCAD edges marginally up as progress remains capped

Posted on September 29, 2020 at 1:26 pm GMT

USDCAD has been nicely hovering above the 1.3350 support level but is capped by the 20-day simple moving average (SMA). From a technical perspective, the short-term bias is viewed as positive, reflected by the improvement in the RSI and the stochastic. Yet only a decisive close above the nearby resistance of 1.3418 can boost buying pressure towards the 1.3460 barrier. Stretching further, the bulls may next stop near the 1.3500 psychological mark. In the event of a downside reversal below 1.3350, the 23.6% [..]

Technical Analysis – CADJPY seems to be taking the bulls’ side; key resistance at 79.00

Posted on September 29, 2020 at 9:21 am GMT

CADJPY has been slowly deviating above a two-month low of 78.35 over the past week in the four-hour chart, though a descending trendline drawn from 81.45 and the nearby ceiling of 79.07 have been a hidrance, keeping the pair in a range. The pair is currently pushing for a close above these boundaries and its 50-period simple moving average (SMA) as the momentum indicators seem to be taking the bulls’ side. The MACD continues to strengthen above its red signal line [..]

Technical Analysis – WTI futures lack direction but stand above Ichimoku cloud

Posted on September 29, 2020 at 9:02 am GMT

WTI futures are hovering above the Ichimoku cloud and the 20- and 40-period simple moving averages (SMAs), however, the technical indicators are suggesting a bearish retracement. The RSI is falling in the positive area, flirting with the 50 level, while the stochastic is heading south after the bearish crossover within its %K and %D lines. In case oil surpasses the 40.80 resistance and the 200-period SMA, it could add some optimism for more gains to touch the 41.71 barrier. Breaching this line, the 41.71 [..]

Technical Analysis – EURJPY bounces off 2-month lows; bearish trend pattern intact

Posted on September 29, 2020 at 7:30 am GMT

EURJPY is looking for a rebound after confirming a bearish trend reversal pattern and diving as low as 122.36, the weakest price in two months. The RSI and the Stochastics are justifying any attempt to halt selling pressures as both indicators have bottomed out in oversold area and are heading higher. However, the market has yet to correct the bearish cross between the 20- and the 50-day simple moving averages (SMAs) and that keeps some caution about the market trend. [..]

Technical Analysis – GBPUSD pulls back towards 38.2% Fibonacci; bullish in medium term

Posted on September 29, 2020 at 7:05 am GMT

GBPUSD has finally reversed to the upside after the rebound on the 38.2% Fibonacci retracement level of the up leg from 1.1409 to 1.3487 at 1.2693 and the 100-day simple moving average (SMA). However, the downward movement that started at the beginning of September, may not change unless the market manages to crawl substantially above the 1.3000 psychological mark. The momentum indicators are currently supporting that slightly positive momentum in the very short-term. Specifically, the RSI is picking up speed in the negative territory and the MACD is moving with weak momentum beneath its [..]

Technical Analysis – AUDUSD edges sideways after nosedive; downside risks intact

Posted on September 28, 2020 at 3:22 pm GMT

AUDUSD appears to be consolidating after reaching the 0.7000 mark, following a violent downwards spiral, which extended underneath the Ichimoku cloud and the 200-period simple moving average (SMA). The flattened Ichimoku lines reflect the stall in the pair, while the falling 50- and 100-period SMAs sponsor further negative price action. The short-term oscillators mirror the recent increase in price sentiment. The MACD, some distance below zero, is improving above its red signal line, while the RSI is dipping above the [..]

Technical Analysis – EURGBP keeps erasing September’s rally; enters oversold zone

Posted on September 28, 2020 at 12:42 pm GMT

EURGBP slumped below the 200-period simple moving average (SMA) in the four-hour chart on Monday to test the 61.8% Fibonacci level of the September rally around 0.9027. The downside correction also sent the RSI into the oversold area and where it bottomed out several times in the past few months. While this suggests that an upside reversal could be around the corner, the indicator, as well as the fast Stochastics, need first to find a turning point to convince that [..]

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