Technical Analysis

Technical Analysis – USDJPY next upside target at 107.70; short-term bias bullish

Posted on August 12, 2020 at 7:25 am GMT

USDJPY gained stronger positive traction this week, gearing above the 20-day simple moving average (SMA) on Tuesday to close successfully above the 106.00 level, which was a struggle last week. The price is currently facing the 50% Fibonacci of the 112.21-101.17 downleg at 106.70 and the 50-day SMA, a break of which is required to boost momentum towards the 107.52- 108.00 resistance zone. The positive slope in the RSI, which has crossed above its 50-neutral mark, and the rebound in [..]

Technical Analysis – GER 30 index denied further advances above MAs

Posted on August 11, 2020 at 3:22 pm GMT

Germany 30 index (Cash) was deprived of additional gains after the index shot above the 100-period simple moving average (SMA), escaping a region where the SMAs had converged. The price appears to have retreated from a limiting level in-line with the upper surface of the Ichimoku cloud around 13,047. Looking at the relatively flattened SMAs, they too reflect the short-term neutral mode that the price has adopted, despite the sudden strength in the index. The Ichimoku lines have stalled their [..]

Technical Analysis – GBPCAD recedes, yet retains a positive tone

Posted on August 11, 2020 at 2:03 pm GMT

GBPCAD faded further into the Ichimoku cloud and dropped below the 50-period simple moving average (SMA), following the retracement from the three-month high of 1.7673 peak. The Ichimoku lines suggest a temporary stalled picture in positive directional momentum. Nevertheless, signs of improvement are still evident in the rising SMAs and the stochastic oscillator. The rising %K line completed a bullish crossover of the %D line, exiting oversold territory and endorsing advances in the pair. The MACD and RSI remain just [..]

Technical Analysis – UK 100 index sinks after impressive rally

Posted on August 11, 2020 at 1:42 pm GMT

The UK 100 index created an impressive bullish run today, overcoming the 6185 barrier and returning quickly lower. The mixed signals in the short-term oscillators reflect a possible stall in the price. The MACD has barely inched above its red trigger line in the positive region, while the stochastic %K line promotes weakness as it is turning lower in the overbought territory. However, the Ichimoku indicator is endorsing a bullish scenario as the red Tenkan-sen line stands above the blue [..]

Technical Analysis – USDCAD under negative tension; sentiment remains bearish

Posted on August 11, 2020 at 9:15 am GMT

USDCAD has pushed under the flat blue Kijun-sen line at 1.3313. An improvement from the 5½-month low of 1.3232 was capped by the Ichimoku cloud, which had merged with the falling 100-period simple moving average (SMA). This resulted in realignment with the bigger negative bearing, something also backed by the falling SMAs and the short-term oscillators, as well as the downward direction of the red Tenkan-sen line. The MACD is under its red trigger line but just above the zero [..]

Technical Analysis – WTI futures tick higher but needs some more fuel

Posted on August 11, 2020 at 9:09 am GMT

WTI crude oil futures are moving higher, surpassing the 20- and 40-period simple moving averages (SMAs) in the 4-hour chart and the Ichimoku cloud. The RSI indicator is edging higher above the 50 level, while the MACD oscillator jumped above its trigger line, suggesting more gains in the short-term. An upside movement could reach immediate resistance at the 42.60 barrier before making a sustained rally towards the five-month peak of 43.48. Clearing this zone, the market could hit the 48.80 [..]

Technical Analysis – GBPUSD trapped between reversal pattern and long-term trendline

Posted on August 11, 2020 at 7:18 am GMT

GBPUSD started the week with weak momentum, holding slightly above the supportive red Tenkan-sen line and the 1.3060 level. Previously, the pair had jumped out of an ascending channel, raising speculation that the bulls may have further room to run. But a long-term descending trendline stretched from the 2015 peaks managed to halt the price around 1.3170, where the pair now seems to have created a double top formation – a bearish reversal pattern. In momentum indicators, the RSI has also topped twice in [..]

Technical Analysis – EURJPY retreats beneath 16-month high; bullish outlook

Posted on August 11, 2020 at 7:09 am GMT

EURJPY has been underperforming in the past two days, testing the red Tenkan-sen line. When looking at the bigger picture the pair has been in a clear bullish tendency since May 6. On the daily chart, prices bounced off the 16-month high of 125.60 but based on the technical indicators, momentum is weakening for a further move higher. The RSI indicator is flattening in the positive region, while the MACD slipped beneath the trigger line above the zero level. If [..]

Technical Analysis – AUDNZD set to confirm a bullish inverse head and shoulder pattern

Posted on August 10, 2020 at 3:57 pm GMT

AUDNZD is again desperately looking to break above the 1.0870 resistance area that has been holding for more than a year now. Slightly higher, the 23.6% Fibonacci retracement level of the 2011-2020 downtrend at 1.0883 is adding extra importance to the region as it looks to be the neckline of a bullish inverse head and shoulder pattern. Should the bulls breach that neckline, the rally may accelerate towards the 1.0970-1.1015 zone which has been a key barrier to upside movements [..]

Technical Analysis – GBPNZD cautiously positive; gains meet significant strain

Posted on August 10, 2020 at 3:17 pm GMT

GBPNZD is tackling the capping 100-day simple moving average (SMA) at 1.9880 at the ceiling of the Ichimoku cloud. The bullish demeanour of the Ichimoku lines look to be aiding the price’s recent ascent from 1.9000, which has so far recouped some losses of a three-month deterioration. The short-term oscillators also reflect the improvement in positive momentum. The MACD, in the positive section, is increasing above its red trigger line as the RSI sneaks into overbought territory. Moreover, the stochastic [..]

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