Technical Analysis

Technical Analysis – EURUSD trend signals turn greener

Posted on August 6, 2020 at 2:27 pm GMT

EURUSD is stubbornly pushing for a close above the 1.1900 level this week, having surpassed it already, though marginally. In the weekly timeframe, hopes for more improvement have strengthened after the price breached a 12-year old resistance trendline, while the first bullish cross between the 20- and 50-weekly simple moving averages (SMA) in three years is further boosting the sentiment. Should the pair claim the 61.8% Fibonacci retracement of the 1.2554-1.0636 downtrend at 1.1820, closing above the 1.1900 level too, the door would open for the 1.2130 restrictive [..]

Technical Analysis – EURJPY maintains a positive trajectory despite pullback

Posted on August 6, 2020 at 2:12 pm GMT

EURJPY continues to dictate an improving picture as the price triumphs above the Ichimoku cloud and the simple moving averages (SMAs). The advancing Ichimoku lines and positively charged SMAs endorse the prevailing uptrend regardless of the latest weakening in the pair. The short-term oscillators mirror the recent deterioration in positive momentum. The MACD, in the positive region, has dipped below its red trigger line, while the RSI deflected off the 70 level and nears the neutral threshold. Moreover, the stochastics [..]

Technical Analysis – Silver repeats July’s bullish dynamics

Posted on August 6, 2020 at 12:26 pm GMT

Sliver is repeating July’s dynamics as it stubbornly pushes for fresh highs this week. The price found new buyers and hit a fresh five-year top at 28.29 on Thursday after crossing above the 38.2% retracement level of the 2011-2020 downtrend. The metal is already up 14.5% so far this month. Although the market is trading in overbought terittory in all timeframes, the momentum indicators have yet to show signs of weakness, keeping the risk tilted to the upside. Specifically, in [..]

Technical Analysis – AUDUSD takes a breather; maintains healthy positive picture

Posted on August 6, 2020 at 8:15 am GMT

AUDUSD is experiencing a steady appreciation and appears to be barely affected by a recent stumble in the price. This is reflected in the rising Ichimoku lines, which indicate that the pair’s positive momentum is intact. Furthermore, the Ichimoku cloud, the 50- and 100-day simple moving averages (SMAs), and the nearing bullish crossover of the 200-day SMA by the 100-day one may keep confidence in the ascent for a while longer. Glancing at the oscillators, positive momentum looks paused in [..]

Technical Analysis – WTI oil futures likely awaiting a volatile session

Posted on August 6, 2020 at 7:29 am GMT

WTI oil futures for September delivery stabilized near the 200-day simple moving average (SMA) and around the 61.8% Fibonacci retracement of the 65.61-6.62 downleg after unlocking a five-month high of 43.49. Oil has been printing higher highs and higher lows since the plunge to a record low of 6.62, though the uptrend lost shine from June onwards, raising some worries about its sustainability. Meanwhile, Bollinger bands have narrowed significantly, foreshadowing a more volatile session, with momentum indicators currently suggesting that this [..]

Technical Analysis – USDCHF retains negative tone; positive momentum shows promise

Posted on August 6, 2020 at 5:10 am GMT

USDCHF continues to uphold a negative bearing below the declining simple moving averages (SMAs) and the Ichimoku cloud, in spite of its recent bounce near a 5½-year low of 0.9055. That said, looking at the short-term oscillators they reflect improvements in positive momentum. However, this could prove short lived as the predominant negative SMAs hold their course. The MACD, in the negative area, has slowed below its red trigger line, while the RSI ricocheted off the 30 level. Moreover, the [..]

Technical Analysis – GBPJPY takes a breather; positive picture intact

Posted on August 5, 2020 at 2:14 pm GMT

GBPJPY looks to have consolidated somewhat after plotting a near two-month high of 139.19, although it has managed to maintain a positive tone. This view is also endorsed by the rising simple moving averages (SMAs) and the positive bearing of the Ichimoku lines. The short-term oscillators further suggest that positive momentum is strengthening and promote additional improvements in price. The MACD, in the positive region, although below its red signal line is looking to reclaim it, while the RSI is [..]

Technical Analysis – USDJPY downside risks endure under SMAs and diagonal line

Posted on August 5, 2020 at 7:51 am GMT

USDJPY is following a downward trajectory despite efforts to recoup recent losses, mirrored in the stalled blue Kijun-sen line and the improvement in the MACD oscillator. The negative direction appears to persist backed by the gradual declining simple moving averages (SMAs) and the unbroken bearish tone of the Ichimoku lines, with a falling red Tenkan-sen line. The MACD, in the negative region, has pushed above its red trigger line while the RSI slowly glides lower in bearish territory. To the [..]

Technical Analysis – EURGBP halts decline below trendline

Posted on August 5, 2020 at 7:12 am GMT

EURGBP could not sustain strength above the ascending trendline that seems to have adopted a resistance role following its downside violation, with the price retreating slightly below the 0.9000 level on Monday. The 38.2% Fibonacci of the 0.9497-0.8670 downleg came immediately to the rescue thereafter, helping the pair to rebound near 0.8980 and hold above its previous low of 0.8937, a break of which would raise concerns about the short-term upward pattern. From a technical perspective, the short-term bias is [..]

Technical Analysis – USDCAD edges sideways near 2-month bottom levels

Posted on August 4, 2020 at 3:21 pm GMT

USDCAD appears to have adopted a neutral nature around the lower levels of the last two months, confined between 1.3330 and 1.3459. The flattening out of the 50-period simple moving average (SMA) and the Ichimoku lines further reflect this view of weak directional momentum. The short-term oscillators suggest conflicting signals of momentum. Although the RSI points downwards under the 50 threshold, the stochastic oscillator is bullish, coming out of the oversold region. Adding to this, the MACD and red signal [..]

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