Technical Analysis

Technical Analysis – USDCHF exposed to a bullish trend reversal

Posted on September 17, 2020 at 7:44 am GMT

USDCHF’s sell-off seems to have found a bottom around its 5 ½-year low as the five-week old range looks to have transformed to an inverse head and shoulder pattern – a bullish signal that the price may change direction to the upside. However, this is not the only encouraging sign. In momentum indicators, the RSI has been printing higher highs and higher lows along an ascending trendline and is currently ready to cross back above its 50 neutral mark. Likewise, the MACD [..]

Technical Analysis – EURUSD plummets to 1-month low; neutral in bigger picture

Posted on September 17, 2020 at 7:07 am GMT

EURUSD plunged to a new one-month low of 1.1737, posting a spike below the strong barrier of 1.1753. The selling interest started after the pull back from the 1.1900 handle and the price declined beneath the simple moving averages (SMAs). The MACD is falling below its trigger and zero lines, however, the RSI is trying to turn north in the bearish zone. Should the pair stretch south, 1.1695 could provide immediate support before the pair touches the 1.1625 inside swing [..]

Technical Analysis – EURCHF retracts as negative sentiment sustains sideways pattern

Posted on September 16, 2020 at 3:02 pm GMT

EURCHF has recently receded below the 50-day simple moving average (SMA), determined to test the base of a near two-month persisting range. Negative sentiment appears to be prevailing in the short-term oscillators as well, despite the bullish bearing of the 50- and 100-day SMAs. The MACD is barely holding in the positive region but below its red trigger line, while the RSI has slipped into bearish territory. The stochastic lines appear tangled and remain in the oversold zone. If selling [..]

Technical Analysis – GBPJPY jumps higher, but still negative in near term

Posted on September 16, 2020 at 1:23 pm GMT

GBPJPY is advancing above the 20-period simple moving average (SMA) in the 4-hour chart, moving towards the significant 136.62 resistance level. The technical indicators are endorsing the recent upside run, with the MACD gaining ground above its trigger line and the RSI pointing north. An extension above the 136.62 key level could meet the area between the 23.6% Fibonacci retracement level of the down leg from 142.70 to 136.38 at 137.10 ahead of the 40-period SMA at 137.53. Further up, resistance [..]

Technical Analysis – EURGBP under negative strain; retraces to 38.2% Fibonacci

Posted on September 16, 2020 at 12:52 pm GMT

EURGBP dived towards the 0.9130 barrier, that being the 38.2% Fibonacci retracement of the up leg from 0.8865 to 0.9291, seeking to extend a deeper withdrawal from the recent 5½-month peak of 0.9291. The falling red Tenkan-sen line is fuelling the descent and could boost it with a bearish overlap of the blue Kijun-sen line. Additional negative backing is reflected in the short-term oscillators. The MACD, in the positive region, is decreasing below its red signal line, while the RSI [..]

Technical Analysis – USDCAD hits a ceiling around 1.3260

Posted on September 16, 2020 at 11:34 am GMT

USDCAD has been trending upwards over the last two weeks following the bounce off a fresh eight-month low of 1.2993. However, a strong resistance around the 1.3207 barrier has been a barrier to additional gains over the past week, shifting the spotlight back to the ascending trend line around 1.3150. The momentum indicators in the four-hour chart though are currently supporting the ongoing sideways move in the price. Specifically, the RSI is holding around the 50 level, while the stochastic is reversing lower after posting a bearish crossover within its %K [..]

Technical Analysis – USDJPY restrained, unable to break neutralizing shackles

Posted on September 16, 2020 at 8:15 am GMT

USDJPY continues to be robbed of directional momentum as the pair lingers, controlled by the 105.09 and 107.00 boundaries of a sideways pattern. The Ichimoku lines and the cloud propose minimal change in price action, while the drifting tone of the simple moving averages (SMAs) reflects little promise in assisting a new direction. Nonetheless, the short-term oscillators are slightly tilting towards an unfolding negative outcome. The MACD, in the negative region, has dipped below its red trigger line, while the [..]

Technical Analysis – NZDUSD keeps bullish bias intact; next resistance at 0.6787

Posted on September 16, 2020 at 6:51 am GMT

NZDUSD printed another higher low around the ascending trendline drawn from the March lows and its shorter-term simple moving averages (SMA), further strengthening its six-month old uptrend. The positive slope in the RSI and the Stochastics, and the soft rebound in the MACD, which is set to cross back above its red signal line, suggest that there is more bullish action in store. The 20- and 50-day SMAs back this view too as the lines continue to point upwards. Still, [..]

Technical Analysis – WTI futures exit from short-term symmetrical triangle

Posted on September 15, 2020 at 8:57 am GMT

WTI crude oil futures have been in a tight symmetrical triangle over the last week, failing to decline further in the short-term. The price found strong resistance around the 20-period simple moving average (SMA) and the minor descending line. The RSI indicator is pointing slightly up in the negative territory, while the MACD is increasing above the trigger line, both suggesting an upside penetration of the pattern. Should the pair stretch north, the 40-period SMA at 37.74 could provide immediate [..]

Technical Analysis – GBPUSD exhibits mixed directional signals, injuring sell-off

Posted on September 15, 2020 at 8:13 am GMT

GBPUSD has pivoted at the 1.2762 level within the Ichimoku cloud and near the 200-day simple moving average (SMA), disrupting the correction from the 8½-month peak of 1.3481. Aiding downside pressure is the falling red Tenkan-sen line, which has crossed under its blue-Kijun-sen line. The MACD, below its red trigger line is sponsoring negative price action as it dips further below the zero mark. Nonetheless, the RSI’s rebound ahead of the 30 level suggests a pick-up in positive momentum. The [..]

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