Technical Analysis

Technical Analysis – EURUSD loses momentum beneath 27-month high

Posted on August 20, 2020 at 1:00 pm GMT

EURUSD is on course for a bearish correction after the spike on the 27-month peak of 1.1965 on Tuesday. The sell-off, especially on Wednesday, has drove the price near the 40-period simple moving average (SMA) in the 4-hour chart. The momentum indicators are supportive of the bearish picture, with the RSI remaning inside negative territory, the MACD losing ground towards the zero line. Immediate support is being provided by the Ichimoku cloud around 1.1811 ahead of the 23.6% Fibonacci retracement [..]

Technical Analysis – USDCHF tumbles after the pullback on the falling trend line

Posted on August 20, 2020 at 12:17 pm GMT

USDCHF pulled back on the two-week descending trend line around 0.9160 after the aggressive buying interest in the preceding sessions. The RSI rebounded on the 70 level, while the stochastic oscillator created a bearish crossover within its trigger and zero lines in the overbought region. Both are suggesting the continuation of the bearish sentiment. If the pair weakens, the 23.6% Fibonacci retracement level of the down leg from 0.9467 to 0.9008 at 0.9116 could provide immediate support ahead of the [..]

Technical Analysis – AUDJPY capped by recent highs, uptrend pauses

Posted on August 20, 2020 at 11:14 am GMT

AUDJPY has been trading in a narrow sideways range for a month now, between 76.80 and 74.70. A break in either direction is needed to reveal the pair’s short-term tendency, though in the bigger picture, only a decisive move below 72.70 would call into question the five-month uptrend. Short-term oscillators detect fading upside momentum and imply that the pair could test the lower bound of its recent range soon. The RSI is pointing down and looks ready to cross [..]

Technical Analysis – AUDUSD retains steady positive tone despite pullback

Posted on August 20, 2020 at 8:23 am GMT

AUDUSD has managed to preserve its five-month progression from the 17½-year low of 0.5506 to the fresh high of 0.7275. The bullish simple moving averages (SMAs) and the positive demeanour of the Ichimoku lines continue to convey optimism in the pair, despite its recent weakening. The technical oscillators mirror the current pullback in the pair displaying the fading in positive momentum. The MACD, in the positive region, is cautiously trailing below the red signal line, while the RSI is waning [..]

Technical Analysis – WTI futures develop with weak momentum near 5-month high

Posted on August 20, 2020 at 7:16 am GMT

WTI crude oil is moving sideways in the short-term, in a slightly bullish structure beneath the five-month high of 43.52. The 20- and 40-day simple moving averages (SMAs) are acting as strong support for the bears; however, the MACD oscillator is indicating a negative divergence in the market, signaling a possible bearish retracement. A successful climb above the five-month high of 43.52 could challenge the 48.80 resistance, registered on March 3. Even higher, the 54.62 barrier taken from the peak [..]

Technical Analysis – US 500 index strongly bullish; looking overbought

Posted on August 19, 2020 at 12:45 pm GMT

The US 500 index reached another all-time high of 3,397.36 earlier today as the index extends one of its fastest bulls run in its history. The momentum indicators are looking overbought as the RSI is flattening near the 70 level, while the MACD is moving sideways in the positive territory. Should prices reverse lower, immediate support could come at the red Tenkan-sen and the blue Kijun-sen lines at 3,360 and 3,290 respectively ahead of the 3,200 support, which coincides with [..]

Technical Analysis – Gold resumes ascent, steering above the Ichimoku cloud

Posted on August 19, 2020 at 12:35 pm GMT

Gold has nudged back above the Ichimoku cloud and over the simple moving averages (SMAs) after a bounce off the 200-period SMA, around 1,863, resetting the upward action. The precious metal has recouped a decent amount of the losses from the all-time high of 2,074.89 to 1,863 low, and continues to be aided by the now bullish Ichimoku lines. The commodity’s positive sentiment appears restored above the cloud, despite the fresh bearish crossover of the 100-period SMA by the [..]

Technical Analysis – GBPJPY tries to continue the 2-month upward move

Posted on August 19, 2020 at 8:58 am GMT

GBPJPY is looking more neutral in the very short-term as prices are hovering above the simple moving averages (SMAs) and within the 138.55 – 140.18 region. Hence the upside momentum in the last week appears to have run out of steam as prices have been attempting and failing to close above the five-and-a-half-month high of 140.18. The technical indicators seem to be mixed. The MACD is slightly strengthening its momentum above its trigger line, while the RSI is pointing down [..]

Technical Analysis – USDJPY restrained in a drift sideways under SMAs

Posted on August 19, 2020 at 8:30 am GMT

USDJPY appears steadfast in a fairly horizontal direction relatively unaltered by the prevailing negative pressures from the gradual declining simple moving averages (SMAs). The price found some footing around the 105.20 level – that being the 61.8% Fibonacci retracement of the up leg from 101.17 to 111.71 – which has helped to keep the decline at bay and extend the consolidation. The MACD, in the negative region, is above but near its red trigger line, while the RSI improves in [..]

Technical Analysis – NZDUSD ticks up but still beneath uptrend line

Posted on August 19, 2020 at 7:03 am GMT

NZDUSD has ticked higher after the drop beneath the five-month ascending trend line in the previous week. The momentum indicators are gaining ground as the RSI surpassed the 50 level and is sloping north, while the stochastic oscillator is heading towards the overbought level following the bullish cross within the %K and %D lines. The price could hit the six-month peak of 0.6717 ahead of the 0.6750 resistance, registered on December 2019. Even higher, NZDUSD could turn traders’ focus at [..]

Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. XM accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The research and analysis does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it.

It has not been prepared in accordance with legal requirements designed to promote the independence of research, and as such it is considered to be marketing communication. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We aim to establish, maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence, which requires our employees to act in our clients’ best interests and to disregard any conflicts of interest in providing our services.

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losing all of your invested capital, so please make sure that you fully understand the risks involved.