Technical Analysis

Technical Analysis – Gold fades from restrictive line to 100-day SMA

Posted on September 28, 2020 at 8:25 am GMT

Gold has found some footing on the 100-day simple moving average (SMA), after deflecting off a preventive line drawn from the all-time high of 2,074 and dropping below the Ichimoku cloud. The paused bearish Ichimoku lines transmit weakness in negative momentum, while all SMAs maintain a bullish tone. That said, the MACD and the RSI reflect the stall in downwards price action, while the stochastics aim to improve. The MACD has eased in bearish territory, while the RSI floats above [..]

Technical analysis – US 500 index turns red after five months; may heal some injuries in near-term

Posted on September 28, 2020 at 8:03 am GMT

The US 500 index (cash) has been printing a series of lower lows and lower highs since the start of September in the four-hour chart, reaching a two-month low of 3,209 last week. Although the index has secured a negative monthly close for the first time in five months, it could push for some recovery in the near-term given the improvement in the MACD and the RSI, which have both bottomed twice near their recent lows before bouncing up. The price [..]

Technical Analysis – EURUSD turns negative after fall below SMAs

Posted on September 28, 2020 at 6:43 am GMT

EURUSD has reversed back down after finding resistance at the 29-month high of 1.2009 achieved on September 1. The momentum indicators are pointing to a neutral to negative bias in the short term with the RSI standing in the negative territory and the MACD heading south below its trigger line. Moreover, the 20- and 40-day simple moving averages (SMAs) are posting a bearish crossover, indicating a reversal move. Further losses should see the inside swing high from January 2019 at [..]

Technical Analysis – NZDUSD bulls halted by mid-Bollinger band; bearish pressures remain

Posted on September 25, 2020 at 12:02 pm GMT

NZDUSD’s fresh upward pivot from 0.6510 has been dismissed by the mid-Bollinger band at 0.6574, which has reset the negative direction, with the price now tackling the 0.6539 barrier. The diving 50- and 100-period simple moving averages’ (SMAs) negative demeanour and their forthcoming bearish overlaps of the 200-period SMA, may further aid a weakening bias. The short-term oscillators back a deteriorating picture. The MACD, far below zero, although above its red signal line appears to be waning, while the dipping [..]

Technical Analysis – US 30 index pauses negative move at 100-day SMA

Posted on September 25, 2020 at 9:31 am GMT

The US 30 (cash) index found support at the 100-day simple moving average (SMA) and the 23.6% Fibonacci retracement level of the upward wave from 18,145 to 28,187 at 26,598 on Thursday. The technical indicators are still located in bearish area, with the MACD stretching further below its trigger line and the RSI moving below its neutral threshold of 50. Yet, the latter could also be an indication that the rally is overdone, and hence negative corrections should not be a surprise in coming sessions. [..]

Technical analysis – USDCAD touches 1.3400; eyes further recovery

Posted on September 25, 2020 at 8:01 am GMT

USDCAD climbed as high as 1.3400 on Thursday after jumping out of the six-month old descending channel and overcoming a long-term ascending trendline that has been stubbornly acting as resistance over the past four weeks. The bullish move raised speculation that the bearish phase may have come to an end and it is time to change direction to the upside, though some barriers still need to be removed in the short-term for the rally to continue. The 23.6% Fibonacci of the [..]

Technical Analysis – GBPUSD creeps towards downtrend line; bearish bias unbroken

Posted on September 25, 2020 at 7:54 am GMT

GBPUSD has pushed off the mid-Bollinger band and above the 1.2780 barrier, making efforts to test the downtrend line drawn from the 8½-month high of 1.3481. That said, traders need to keep in mind the dictating negative bearing of the simple moving averages (SMAs), as they may assist the deteriorating picture. The short-term oscillators reflect the stall in the bearish structure and mirror prices’ endeavours towards the diagonal line. The MACD, in the negative region, is improving above its red [..]

Technical Analysis – GBPJPY pulls back after tumble below rising trend line

Posted on September 25, 2020 at 6:50 am GMT

GBPJPY is continuing the rebound off the 132.95 support level but with slower momentum, reaching the red Tenkan-sen line at 134.72. The very short-term bias looks positive as the stochastic keeps gaining ground above its oversold zone, creating a bullish crossover within its %K and %D lines, while the RSI is flattening near the 30 level. The 100-day simple moving average (SMA) currently at 135.72 could be a trigger point for steeper bullish actions. If the pair manages to break the lower [..]

Technical Analysis – JP 225 index continues to edge sideways; sentiment remains weak

Posted on September 24, 2020 at 3:38 pm GMT

Japan 225 stock index (cash) has maintained a relatively horizontal structure despite weakening below all its simple moving averages (SMAs). The 50-period SMA is in the process of completing a bearish crossover of the 100-period SMA, while all SMAs are somewhat converging. The short-term oscillators also reflect a state of weakened directional momentum. The MACD is barely in the negative region and below its red trigger line, while the RSI hovers beneath the 50 threshold. That said, should the price [..]

Technical Analysis – JP 225 index continues edging sideways; sentiment remains weak

Posted on September 24, 2020 at 3:22 pm GMT

Japan 225 stock index (Cash) in spite of weakening below all simple moving averages (SMAs) has maintained a relatively horizontal nature. The 50-period SMA is in the process of completing a bearish crossover of the 100-period SMA, while all SMAs are somewhat converging. The short-term oscillators also reflect a state of weakened directional momentum. The MACD is barely in the negative region and below its red trigger line, while the RSI hovers beneath the 50 threshold. That said, should the [..]

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