Technical Analysis

Technical Analysis – EURJPY sets up a trend reversal pattern after peak at 127.00

Posted on September 15, 2020 at 7:29 am GMT

EURJPY is eying the formation of a potential bearish head and shoulder pattern, with a head at 127.06 and a neckline around 124.40, hinting that the rally may be losing steam and it’s time to reverse south. The slowdown in the 20-day simple moving average (SMA) and the negative cross between the red Tenkan-sen and the blue Kijun-sen lines for the first time since June is another warning that downside pressures may dominate in the short-term. Meanwhile, the RSI is struggling to gain [..]

Technical Analysis – UK 100 index struggles beneath cloud and negative trend line

Posted on September 14, 2020 at 1:49 pm GMT

UK 100 stock index (Cash) appears to be gradually fading below the very short-term descending line and the Ichimoku cloud. The flattened blue Kijun-sen line promotes a fairly sideways picture in the price, while the capping 50- and 100-day simple moving averages (SMAs) and the cloud’s lower surface suggest negative tensions may intensify in the index. That said, the upward sloping red Tenkan-sen line is reflecting current price attempts to develop further, while the RSI is climbing above its neutral [..]

Technical Analysis – USDJPY tests symmetrical triangle in short term

Posted on September 14, 2020 at 12:58 pm GMT

USDJPY has been trading within a symmetrical triangle since July 31 and is currently testing the ascending line of the pattern and the lower Bollinger band. The RSI indicator is falling in the negative territory, while the stochastic is approaching the oversold zone with strong momentum. The short-term simple moving averages (SMAs) are acting as strong resistance for the bulls. If there is a rebound around the 105.90 level and the uptrend line, the pair would need to overcome the moving averages around 106.05 – [..]

Technical Analysis – US 500 index sends recovery signals; buyers await above 100-SMA

Posted on September 14, 2020 at 10:15 am GMT

The US 500 stock index (cash) is in a recovery mode and ready to return above the 20-period simple moving average (SMA) in the four-hour chart after refusing to step below the 3,296 bottom. The RSI and the MACD have posted higher lows, indicating an improving short-term bias. However, any additional upside correction may not be attractive enough unless the index jumps above the 100-period SMA, which had strongly rejected the bulls early in August. The 50% Fibonacci of the [..]

Technical Analysis – AUDUSD moves horizontally above the bullish cross of SMAs

Posted on September 14, 2020 at 9:21 am GMT

AUDUSD is standing above the developing bullish crossover within the 20- and 40-period simple moving averages (SMAs), ready to insert back into the Ichimoku cloud in the four-hour chart. Also, the price has been trading above the rising trend line drawn from July 24 despite moving horizontally over the last couple of days. The technical indicators are flattening, with the RSI holding marginally above its 50 level and the MACD remaining muted around its trigger line. An extension to the upside and above the upper surface of the Ichimoku cloud could meet the area around the [..]

Technical Analysis – EURUSD edges sideways; advances could be on the cards

Posted on September 14, 2020 at 8:31 am GMT

EURUSD is currently at a standstill, curbed by the 1.1695 and 1.2010 boundaries, though is still communicating an intact upside development in price that recently stretched slightly above the 1.2000 psychological number. The fresh bearish overlap within the Ichimoku lines is transmitting frailty in the positive momentum, while the rising simple moving averages (SMAs) reflect an unquestionable bullish tone. The short-term oscillators appear to be gaining strength again. The MACD, in the positive region, is below its red signal line [..]

Technical Analysis – EURUSD edges sideways; advances persist in the cards

Posted on September 14, 2020 at 8:18 am GMT

EURUSD is currently at a standstill curbed by the 1.1695 and 1.2010 boundaries, though is still communicating an intact upside development in price, that recently stretched slightly above the 1.2000 psychological number. The fresh bearish overlap within the Ichimoku lines is transmitting frailty in positive momentum, while the rising simple moving averages (SMAs) reflect an unquestionable bullish tone. The short-term oscillators appear to be gaining strength again. The MACD, in the positive region, is below its red signal line but [..]

Technical Analysis – Gold’s next action could occur outside the triangle

Posted on September 14, 2020 at 7:45 am GMT

Gold opened with weak momentum on Monday, showing little interest to exit the one-month old horizontal trajectory that is taking place within the 1,900-2,000 area. Although not very clear, the sideways move seems to be completing a symmetrical triangle, where any clear break below or above it could determine the next direction in the market. Meanwhile the momentum indicators are reflecting a neutral-to-bearish short-term risk as the RSI continues to hover around its 50 neutral mark, while the Ichimoku indicators ( [..]

Technical Analysis – US 30 index under negative strain; broader positive picture challenged

Posted on September 11, 2020 at 12:05 pm GMT

US 30 stock index (Cash) is flirting with the 200-period simple moving average (SMA) following a bounce off the 27,196 barrier, which was then capped by the 100-period SMA around 28,207. The retreat from the 6½-month high of 29,195 appears to maintain its waning negative tone, and may receive a boost from the forthcoming bearish crossover of the 100-period SMA by the 50-period one. That said, the merged Ichimoku lines are currently edging sideways reflecting a slowing pace in the [..]

Technical Analysis – NZDUSD hovers in Ichimoku cloud; gains some ground

Posted on September 11, 2020 at 9:14 am GMT

NZDUSD looks to be creating a floor inside the Ichimoku cloud and above the 200-period simple moving average (SMA). The RSI indicator is ticking marginally up near the neutral threshold of 50, while the stochastic posted a bullish crossover within its %K and %D lines following the bounce off the 20 level. Traders, however, would be more eager to engage in buying activities if the price manages to surpass the nearby 40-period SMA at 0.6687. If this is successfully breached, [..]

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