Technical Analysis

Technical Analysis – GBPUSD touches an almost 5-month high; RSI in overbought area

Posted on July 31, 2020 at 11:24 am GMT

GBPUSD advanced considerably to an almost five-month high of 1.3142 during Thursday’s session, posting six green candles in a row in the 4-hour chart. The MACD oscillator is strengthening its momentum above its trigger and zero lines, however, the RSI is flattening in the overbought territory, indicating a possible downside retracement. The Ichimoku indicators and the short-term moving averages (SMAs) are still suggesting more gains in the near term. In case the pair rises above the 1.3142 barrier, it could meet resistance at the 1.3200 psychological mark – last seen in March – before [..]

Technical Analysis – US 100 index not ready to give up bullish run

Posted on July 31, 2020 at 11:12 am GMT

The US 100 stock index (cash) drifted higher and above the previous peak of 10,743 on Thursday, hinting that it is not ready to give up its positive trajectory yet. The 10,950 resistance level is keeping the bulls busy in the four-hour chart today. Should it fail to hold, the index could advance towards its record highs registered around 11,069. At this point, it would be interesting to see if the market creates a bearish triple top formation or extends [..]

Technical Analysis – USDCAD rebounds near 1.3310 low; bearish cross in SMAs

Posted on July 31, 2020 at 7:22 am GMT

USDCAD found a strong rebound around the 1.3310 low heading towards the bearish crossover within the 20- and 40-day simple moving average (SMA) to the 200-day one. The RSI bounced off the oversold territory and is pointing south, while the %K line of the stochastic oscillator recorded a bullish cross with the %D line in the negative area. More advances could find immediate resistance at the SMAs, which are currently hovering near 1.3520. Particularly, a decisive close above this level [..]

Technical Analysis – USDCHF dives to 5 ½-year lows; brutal sell-off likely nears a bottom

Posted on July 31, 2020 at 6:33 am GMT

USDCHF is set to complete its sixth consecutive bearish week and close below the 0.9075 tough support area from May 2015, further confirming the break of a long-term range zone. The bias remains strongly negative as reflected by the downward-sloping simple moving averages (SMAs) and the weakening momentum indicators. However, hopes that the sell-off may soon lose steam are rising in the daily chart as the RSI is approaching a former base zone within oversold territory, while the MACD could [..]

Technical Analysis – Alphabet (Google) stock endorses positive picture beneath multi-year peak

Posted on July 30, 2020 at 1:37 pm GMT

Alphabet’s (Google) stock price has reversed from the multi-year high of 1,579.30, finding strong support at the 1,483 level where the Ichimoku cloud is currently holding. Positive sentiment appears to be reviving after the bounce on the supportive trend line pulled from the March 23 low of 1,009. Further backing this short-term view are the upward slopes of the 50- and 100-day simple moving averages (SMAs). The RSI, in the positive area, is pointing north above the neutral threshold of 50, while the stochastic [..]

Technical Analysis – EURUSD revisits 20-SMA after meeting 2-year top

Posted on July 30, 2020 at 10:04 am GMT

EURUSD is testing the 20-period simple moving average (SMA) on the downside in the 4-hour chart following the bounce off the more than a two-year high of 1.1805. Immediate support is likely to come from the 1.1695 barrier, which overlaps with the flat blue Kijun-sen line, as the technical indicators are endorsing a negative mode. Below that, the 40-period SMA at 1.1660 and the 1.1625 support could be in the spotlight. The MACD is weakening beneath its trigger line in the positive territory, and the stochastic is moving sharply lower, approaching the 20 level after the reversal [..]

Technical Analysis – AUDUSD slips near 15-month high; strongly bullish in medium term

Posted on July 30, 2020 at 7:46 am GMT

AUDUSD is edging slightly lower after reaching a 15-month high of 0.7185 but is still holding a strong upside tendency since March 19. The stochastic oscillator is pointing down, ready to post a bearish cross within its %K and %D lines in the overbought zone, suggesting some losses in the short-term. However, the MACD oscillator is strengthening its upside structure above its trigger and zero lines. In case the pair extends the pullback, immediate support could come from the 0.7030 – 0.7067 area, which encapsulates the 20-day simple moving [..]

Technical Analysis – GBPJPY set for a bullish breakout

Posted on July 30, 2020 at 7:23 am GMT

GBPJPY is set for a bullish breakout after finding significant support near the lower line of a symmetrical triangle and the 20-day simple moving average (SMA). The pair also managed to step on the surface of the Ichimoku cloud and return slightly above the 50% Fibonacci of the 147.94-124.00 downleg, increasing optimism that the bulls may not give up yet. A similar view is reflected among the momentum indicators too. The RSI is making higher highs and higher lows in the [..]

Technical Analysis – EURGBP rests near 38.2% Fibo; holds in ascending channel

Posted on July 29, 2020 at 1:28 pm GMT

EURGBP has been in an ascending channel since April 30 but is currently testing the 20-day simple moving average (SMA) and the 38.2% Fibonacci retracement level of the up leg from 0.8275 to 0.9500 at 0.9035. The momentum indicators are suggesting a possible downside pullback as the RSI is meeting the 50 level and the stochastic is moving lower after a bearish cross within the %K and %D lines. If sellers drive the pair below the 100-day SMA at 0.8940, [..]

Technical Analysis – Gold advances suppressed by all-time high

Posted on July 29, 2020 at 9:22 am GMT

Gold maintains a horizontal trajectory pressed below the all-time high of 1,981 but is still in a strong bullish mode in the long-term picture. A paused state of directional momentum is reflected in the Ichimoku lines as the price rests near the red Tenkan-sen line. The mixed signals in the short-term oscillators further reflect the stall in the price. The MACD has barely inched below its red trigger line in the positive region, while the RSI is improving its movement near the overbought zone. If buyers [..]

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