Technical Analysis

Technical Analysis – Gold edges sideways; negative pressures dwindle

Posted on September 2, 2020 at 9:22 am GMT

Gold has bounced on the Ichimoku cloud’s upper surface, while the simple moving averages (SMAs) converge slightly beneath. The recent weakness from the 1,992 barrier appears to be receding as the Ichimoku lines stabilise. Nonetheless, the SMAs and the Ichimoku cloud continue to dictate a neutral demeanour that has grasped the commodity for the last two weeks. The oscillators suggest mixed signals of directional momentum. The MACD is weakening in the positive region, slipping below its red signal line. Yet, [..]

Technical Analysis – GBPJPY tumbles from 6-month high; positive momentum feeble in short term

Posted on September 2, 2020 at 9:11 am GMT

GBPJPY is retreating after finding significant resistance at the six-month high of 142.70 and is now heading towards the 20-period simple moving average (SMA) at 141.30 in the 4-hour chart. The momentum indicators provide negative signals as the MACD oscillator is losing ground after completing a bearish crossover with its trigger line in the positive zone, while the RSI is pointing south after the pullback in the overbought territory. In the light of negative pressures, a tough support could initially develop near the 23.6% Fibonacci retracement level of the up leg from 134.00 to 142.70 at [..]

Technical Analysis – EURGBP claims new 3-month low as bears keep control

Posted on September 2, 2020 at 7:23 am GMT

EURGBP started the new month on the negative side, extending its weakness below a broken dashed ascending trendline to an almost three-month low of 0.8887 on Tuesday. The next key support is expected to occur slightly lower around the 23.6% Fibonacci retracement of the 0.9497-0.8670 downleg at 0.8864, with technical indicators reflecting that bearish forces have not faded yet. The 20-day simple moving average (SMA) has crossed below the 50-day SMA, while the Stochastics are still looking for a turning [..]

Technical Analysis – NZDUSD bullish at 8-month top of 0.6787

Posted on September 2, 2020 at 6:51 am GMT

NZDUSD is continuing last week’s rebound with strong momentum, reaching eight-month highs at 0.6787 today and at the same time confirming the bullish tendency again. The short-term bias looks positive as the MACD keeps gaining ground above its red signal line, while the RSI seems to be making its way up above its 70 mark, though more progress is needed from the latter. However, the stochastics is looking overbought, as it turns lower above the 80 level. The 0.6940 resistance level identified [..]

Technical Analysis – UK 100 index looking increasingly negative below SMAs

Posted on September 1, 2020 at 3:20 pm GMT

UK 100 stock index’s (Cash) somewhat stalled short-term picture is under strain as the index is encountering growing negative pressures, which are attempting to return a bearish bias. The price is currently testing the 5,850 barrier while the red Tenkan-sen line dips lower. Nonetheless, as things stand, no clear directional signals are reflected in the converging 50- and 100-day simple moving averages (SMAs), while the 200-day SMA maintains a negative bearing. That said, the RSI is falling in bearish territory, [..]

Technical Analysis – Silver holds positive compass, despite some weakening

Posted on September 1, 2020 at 1:37 pm GMT

Silver propelled above the 28.46 high, securing the recently acquired ground from the 26.50 mark. Reinforcing this move is the intact bullish bearing of the Ichimoku lines. Looking at the short-term oscillators, positive momentum appears to be on track despite the recent reflected weakness in price. The MACD, in the positive section, is above its red trigger line, while the RSI has dipped slightly below the 70 level. Additionally, the stochastic lines have yet to confirm a bearish shift in [..]

Technical Analysis – Japan 225 index struggles below 6-month high; slightly bullish

Posted on September 1, 2020 at 1:06 pm GMT

The Japan 225 index has been in a slightly bullish tendency over the last two-and-half months, hovering above the strong 200-day simple moving average (SMA). The RSI, in the positive territory, is pointing north, while the MACD, above the zero level, is moving horizontally and confirming the recent weak momentum on price action. Should the price stretch higher, the 23,445 level which the bulls were unable to break in the preceding week could provide immediate resistance. Moving higher, the focus [..]

Technical Analysis – USDCAD communicates a commanding bearish bias

Posted on September 1, 2020 at 9:06 am GMT

USDCAD seems to be pursuing its proclaimed bearish direction, something also conveyed through the dominant negative bearing within the simple moving averages (SMAs). The short-term oscillators as well as the falling Ichimoku lines deliver a negative demeanour reinforcing this view. The MACD, some distance in the negative region, is decreasing below its red signal line, while the RSI is slipping further in oversold territory. Moreover, the stochastic oscillator has retreated back into the oversold zone, promoting further losses in the [..]

Technical Analysis – GBPUSD bullish at 9-month high; 2019 peak next in focus

Posted on September 1, 2020 at 7:13 am GMT

GBPUSD found strong support along the upper line of an upward-sloping channel and accelerated above a five-year old descending trendline, avoiding the confirmation of any bearish trend pattern. The price is currently trying to claim the 1.3400 area and crawl towards the 2019 peak of 1.3515, which is a possible scenario as the technical indicators reflect a cautiously bullish bias. The pair is comfortably above its simple moving averages (SMA), the MACD is regaining strength above its red signal line, [..]

Technical Analysis – EURJPY flirts with 18-month peak of 126.83

Posted on September 1, 2020 at 7:11 am GMT

EURJPY recorded a stunning rally towards an 18-month high of 126.86 after finding strong support at the 20-day simple moving average (SMA) and the rising trend line several times in the preceding days. The RSI is currently increasing positive momentum towards its 70 level, while the MACD is strengthening its movement and is trying to post a bullish crossover within its trigger line. Moreover, the moving averages are continuing to slope north. Should the market extend gains, resistance could be [..]

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