Technical Analysis

Technical Analysis – GBPJPY spikes to fresh 6-month high but retreats

Posted on September 4, 2020 at 6:51 am GMT

GBPJPY has been developing in an ascending movement since March 18, reaching a fresh six-month high of 142.70, returning lower, suggesting a downside retracement in the daily timeframe. The pair is hovering above the short- and medium-term simple moving averages (SMAs), though the momentum indicators are heading south. The RSI pulled back from the overbought zone and is flattening, while the stochastic is approaching the 20 region. Should bearish dynamics dominate in the very short-term, the market might revisit the [..]

Technical Analysis – Copper futures stop at 26-month highs; positive risks may fade

Posted on September 3, 2020 at 1:17 pm GMT

Copper futures reached overbought levels according to the RSI and reversed lower after touching the 26-month peak of 3.0898 achieved on September 1. While the aforementioned technical indicator continues to slow down, mirroring the market’s bearish behavior over the past three days, the indicator is still moving in bullish territory, flagging that a recovery could reemerge in the short term. On the other hand, the MACD is holding below its trigger line, which supports the pullback. In case the pair changes its short-term direction to the [..]

Technical Analysis – GBPCHF reverses at 200-day SMA, prolonging sideways pattern

Posted on September 3, 2020 at 12:32 pm GMT

GBPCHF pivoted at the 200-day simple moving average (SMA) preserving the horizontal structure and reinforcing its confines of 1.1628 and 1.2257. The 50- and 100-day SMAs have adopted a relatively neutral bearing, which may be aiding the directionless market. Nonetheless, the short-term oscillators mirror the recent weakness in the price, suggesting growing negative momentum. The MACD, in the positive region, stands above its red trigger line but looks to have paused. The falling RSI deflected off the 70 mark, while [..]

Technical Analysis – USDCHF curbed by 200-MA; neutral tone forming

Posted on September 3, 2020 at 9:01 am GMT

USDCHF is currently struggling with the 200-period simple moving average (SMA) at the 0.9139 barrier, after jumping above the very-short-term descending line drawn from 0.9239. That said, the flat blue Kijun-sen line and the levelling out of the bearish 50- and 100-period SMAs suggest that a sideways pattern may be developing. The short-term oscillators are reflecting conflicting signals of momentum, backing a directionless market. The MACD, in the positive area, holds above its red trigger line, while the stochastic oscillator [..]

Technical Analysis – EURJPY on a slippery slope; strongly positive in medium term

Posted on September 3, 2020 at 8:48 am GMT

EURJPY had a bearish start on Thursday, with the price breaking the lower surface of the Ichimoku cloud. The pair has also increased distance below their flattenning moving average lines, indicating that the latest downtrend might hold for longer after it touched the 18-month high of 127.05. Momentum signals are bearish as well as the red Tenkan-sen line, which is below the blue kijun-sen line, looks to be heading south, while the RSI has reversed lower after falling below its [..]

Technical Analysis – AUDUSD bulls are not scared of the correction yet

Posted on September 3, 2020 at 7:20 am GMT

AUDUSD printed a bearish doji just after piercing the 0.7400 level on Tuesday, foreseeing the weakness in the following sessions. The bearish action, however, could be just a correction in the 5 ½-month old uptrend as the 20- and 50-day simple moving averages (SMAs) retain their upward trajectory and remain positively aligned. In Ichimoku indicators, the red Tenkan-sen also continues to hold above the blue Kijun-sen line despite flattening a bit, while the RSI has reversed south but still has some way [..]

Technical Analysis – EURUSD plunges below 1.1800; holds in upward channel

Posted on September 3, 2020 at 7:12 am GMT

EURUSD has lost its positive momentum after the pullback on the two-and-a-half-year high of 1.2010 on September 1, and it has been trading in an upward sloping channel over the last month. In the short-term, the market could retain the selling interest as the RSI is holding well below its 50 neutral mark and the MACD has dropped below its zero and trigger lines. The bearish movement, though, could stay in place given that prices continue to fluctuate below the Ichimoku cloud and the short-term moving averages (SMAs) in the [..]

Technical Analysis – NZDJPY rallies steadily after bounce on 200-day SMA

Posted on September 2, 2020 at 3:28 pm GMT

NZDJPY is struggling to overcome the tough resistance region of highs between 71.65 and 71.90, after a bounce off the 200-day simple moving average (SMA) sky-rocketed the pair. Worth mentioning though are the rising 50- and 100-day SMAs and the forthcoming bullish crossover of the 200-day SMA by the 100-day one, which may further boost the positive picture. The short-term oscillators are also increasingly pointing to additional upside moves. The MACD, in the bullish area, is increasing above its red [..]

Technical Analysis – US 100 index rallies to fresh record highs, near overbought territory

Posted on September 2, 2020 at 1:18 pm GMT

The US 100 index has been completing new record highs over the last three consecutive days, edging towards the 12,465.02 number. According to the stochastics, positive momentum could push for further gains in the short-term as the indicator picks up steam above the 80 level. The RSI is also advancing, close to the 70 overbought threshold. In the positive scenario, where the price continues to expand above today’s high the next resistance is coming from the 261% Fibonacci extension level of the [..]

Technical Analysis – USDJPY maintains sideways bearing; momentum dries up

Posted on September 2, 2020 at 12:17 pm GMT

USDJPY appears stuck between the boundaries of 105.09 and 107.00, as the Ichimoku lines echo a momentum-deprived market. The gradually slipping simple moving averages (SMAs) hold a fairly flattened tone, aiding the current directionless price action. Furthermore, the short-term oscillators also reflect the absent directional momentum. The MACD, slightly below zero, hovers above its red signal line while the advancing RSI resides at its 50 threshold. To the upside, immediate resistance may arise from the cloud’s lower surface and the [..]

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