Technical Analysis

Technical Analysis – CHI 50 index consolidates above SMAs, endures negative pressures

Posted on August 14, 2020 at 12:47 pm GMT

China A50 index (Cash) is floating sideways towards the Ichimoku cloud, following a pullback from the 16,404 top, which has kept positive momentum at bay. Nevertheless, the positively charged 50- and 100-day simple moving averages (SMAs) and their bullish crossovers with the 200-day SMA could maintain the broader positive picture intact for a while longer. That said, the MACD is holding in the positive region, trailing below the red trigger line, while the RSI is trying to pick up off [..]

Technical Analysis – NZDUSD favours trend reversal scenario

Posted on August 14, 2020 at 10:54 am GMT

NZDUSD changed course to the downside this month, printing lower highs and lower lows after peaking at a new 8-month high of 0.6714 in the four-hour chart. Besides the negative price action, the bearish cross registered between the 20- and 200-period simple moving averages (SMAs) this week, which is the first since January, further raised concerns of a down-trending market. With the Stochastics pushing for a rebound just below their 20 oversold level and the RSI not far above 30, [..]

Technical Analysis – GBPUSD extends recess of positive bias

Posted on August 14, 2020 at 9:28 am GMT

GBPUSD has been edging sideways in the Ichimoku cloud for the last week, after retreating from the recent five-month high of 1.3185, just shy of the key 1.3200 peak from March 9. The Ichimoku lines and the flattened 50-period simple moving average (SMA) reflect this horizontal tone within the pair. Nonetheless, the SMAs continue to convey a prevailing positive orientation, while the short-term oscillators exhibit efforts to improve positive momentum. The MACD and its red trigger are pointing upwards slightly [..]

Technical Analysis – US 30 index pulls back from 5½-month high

Posted on August 14, 2020 at 9:24 am GMT

The US 30 index has been in an upside tendency since March 23, reaching a new five-and-a-half month high of 28,180. The price is standing above the ascending trend line and the long- and short-term simple moving averages (SMAs), and the MACD oscillator is still holding above the trigger and zero lines. However, the RSI is returning lower after the bounce off the 70 level. A decline below the 27,639 support could open the way for a retest of the [..]

Technical Analysis – USDCAD seems to be in a make-or-break situation

Posted on August 14, 2020 at 7:39 am GMT

USDCAD has been trading bearish for five consecutive weeks but this time the price is in a sensitive territory, near a long-term supportive trendline that has been rejecting negative corrections since September 2017. Hence, it would be interesting to see if this is the area in which the pair can stage a much-needed recovery or trigger another bearish wave. The weakness in the RSI and the Stochastics keep the short-term bias negative for now, though the indicators are not far from their oversold [..]

Technical Analysis – GBPJPY challenges 24-week high above 140.00

Posted on August 14, 2020 at 6:56 am GMT

GBPJPY posted a noteworthy upside movement as it reached a fresh 24-week high of 140.19 on Thursday, surpassing the previous peak of 139.80. Also, the price is still developing above the five-month ascending trend line. From a technical viewpoint, the RSI indicator jumped above the 70 level, entering the overbought region, while the stochastic oscillator is heading towards the 80 line after the bullish cross within the %K and %D lines. Both are suggesting a possible pullback in the short-term. [..]

Technical Analysis – GBPAUD consolidates, finds traction on lower band of cloud

Posted on August 13, 2020 at 3:24 pm GMT

GBPAUD adopted a sideways mode after a fresh high of 1.8404, creeping into the Ichimoku cloud where it found some positive footing on the floor of the cloud at 1.8174. The horizontal demeanour of the Ichimoku lines and the 50-period simple moving average (SMA) suggest a ranging market could hold for a while longer. Nevertheless, the short-term oscillators and the 50- and 100-period SMAs endorse an improving picture. The MACD and its red trigger line have merged marginally above the [..]

Technical Analysis – AUDUSD bulls flirt with long-term SMA after two years

Posted on August 13, 2020 at 2:35 pm GMT

AUDUSD has been flirting with the 200-weekly simple moving average (SMA) around 0.7240 for the past fortnight while struggling to surpass the 61.8% Fibonacci of the 0.8135-0.5701 downtrend at the same time. The last time the price touched the long-term SMA was in 2018. The pair violated the 2018 downward pattern and increased the odds for further recovery after crossing above the previous high of 0.7030 and jumping out of the Ichimoku cloud. A bullish cross between the 20- and 50-weekly SMAs [..]

Technical Analysis – CHFJPY rallies to an almost 2-year high

Posted on August 13, 2020 at 2:13 pm GMT

CHFJPY is advancing to an almost two-year high of 117.47 with strong momentum, confirmed by the rising 20- and 40-day simple moving averages (SMAs). The RSI indicator seems to be taking a turning point near the overbought level. However, the MACD is still extending above the trigger and zero lines. A positive run above today’s high could challenge the 118.05 – 118.55 resistance area ahead of the next round numbers of 119.00 and 120.00. After that, the 124.00 handle from December 2015 could come in focus. On the other hand, if [..]

Technical Analysis – EURUSD uptrend edges sideways; upside risks remain

Posted on August 13, 2020 at 10:24 am GMT

EURUSD appears to have consolidated its advancements between 1.1695 and 1.1915, despite existing positive signals. In the meantime, the price is engaging the Ichimoku clouds upper band at 1.1842, while the 50-period simple moving average (SMA), the cloud and Ichimoku lines, sponsor a horizontal bias. Nonetheless, the short-term oscillators and the bullish tone of the 50- and 100-period SMAs, promote further improvements. The strengthening MACD has risen above its red signal line and the zero mark, while the RSI is [..]

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