Technical Analysis

Technical Analysis – NZDUSD bulls may take a breather in short-term

Posted on July 29, 2020 at 7:39 am GMT

NZDUSD pierced the 0.6700 whole number before inching down on Tuesday, stretching its upward pattern to an almost 8-month high. With the RSI having topped twice just below its 70 overbought mark, and the Stochastics shifting south from their 80 level, weakness is expected to persist in the short-term. If that is the case, the area around the 20-day simple moving average (SMA) at 0.6580 could immediately attract attention given its resilience to downside and upside pressures in the past. [..]

Technical Analysis – USDJPY plunges to 20-week low below 105.00

Posted on July 29, 2020 at 7:15 am GMT

USDJPY tumbled to a fresh 20-week low of 104.94 earlier today, completing the fifth negative session in a row. The price shifted the neutral picture to bearish in the short term, declining beneath the 61.8% Fibonacci retracement level of the up leg from 101.15 to 109.83 at 105.19. Further backing this short-term view are the downward slopes of the 20- and 40-day simple moving averages (SMAs). However, for now the technical oscillators reflect bearish signals. The MACD, in the negative [..]

Technical Analysis – Facebook stock fails to improve positive picture

Posted on July 28, 2020 at 1:12 pm GMT

Facebook’s stock price retreated beneath the all-time high of 249.60, trading around the 50-day simple moving average (SMA). The upside picture faded in the very short term as the MACD oscillator dropped beneath its trigger line near the zero level, while the RSI is holding in the negative territory, suggesting some losses may be on cards. If the stock price successfully surpasses the 50-day SMA, immediate resistance is coming from the red Tenkan-sen line at 236.85 before pausing its move at 249.60. [..]

Technical Analysis – Dollar index stabilizes 7-day bearish strike near 2-year lows

Posted on July 28, 2020 at 9:43 am GMT

The US dollar index (futures) found a bottom around an almost two-year low of 93.40 after a seven-day bearish strike, which put the market back on a negative path. While the Stochastics and the RSI in the four-hour chart signal that the market has reached the edge of the oversold territory as the indicators move upwards, the index has now a long way to go to cross the 97.77 border and hence eliminate fears of a down-trending market. The strenghthening MACD oscillator is also [..]

Technical Analysis – EURJPY bulls look exhausted, but the trendline is still intact

Posted on July 28, 2020 at 7:18 am GMT

EURJPY has been struggling to retain strength above the 123.75 resistance area over the past three days, and therefore unable to touch the 13-month high of 124.42. Some weakness is visible in momentum indicators, flagging that the pair could face downside pressure in the short-term; the RSI and the Stochastics seem to have found a turning point in the overbought territory, while the MACD has been rising at a softer pace lately. Still, sellers may not take control unless the steep ascending trendline that [..]

Technical Analysis – GBPUSD unlocks 1.2900; holds in upward channel

Posted on July 28, 2020 at 6:37 am GMT

GBPUSD has been in a strong bullish tone for seven consecutive days, climbing to a more than four-month high of 1.2903. The pair is challenging the upper boundary of an upward sloping channel, which has been holding since the end of March. In momentum indicators, the MACD oscillator is holding above its trigger and zero lines, while the RSI is approaching the overbought territory, suggesting a possible pullback in the short-term timeframe. The Ichimoku lines are still pointing upwards, while the 20- and 40-day simple moving [..]

Technical Analysis – US 500 index spots bearish divergence; triangle in focus

Posted on July 27, 2020 at 12:23 pm GMT

The US 500 index (cash) stabilized near the 3,200 familiar support level after two consecutive bearish days. Previously, the market had printed a new higher high at 3,292, further strengthening the four-month old uptrend. However, the RSI seems to have registered a lower peak at the same time, increasing worries about a bearish divergence. The slowing MACD, which has slipped below its red signal line, is another discouraging signal. Selling orders could pick up momentum if the price drops below [..]

Technical Analysis – USDJPY exits range area and tumbles to 4½-month lows

Posted on July 27, 2020 at 9:43 am GMT

USDJPY crashed out of the 118.15-106.00 range area and towards a 4 ½-month low of 105.37 on Monday, raising speculation that the sell-off may continue. The 38.2% Fibonacci retracement of the 112.1-101.17 downleg is currently supporting the market. But if it soon gives up, the price could decelerate to 105.00, while lower, the bears may pause around the 104.35 barrier, which is slightly below the 2019 trough. Meanwhile, the RSI and the stochastics in the four-hour chart look to have bottomed out [..]

Technical Analysis – Gold shines at a new record high after 9 years

Posted on July 27, 2020 at 7:36 am GMT

Gold stretched its unstoppable rally to uncharted territory on Monday and to a new top of 1,944 after easily surpassing the 2011 record high of 1,920. A downside correction or some consolidation would not be a big surprise in the short-term as the market is trading well into the overbought zone according to the rising RSI and the Stochastics which have already registered a bearish cross above 80. In this case, the 1,900 round number could immediately add footing under the price, deterring any [..]

Technical Analysis – US 30 index dives after reaching 1-month high again

Posted on July 24, 2020 at 9:59 am GMT

The US 30 cash index is tumbling over the last couple of sessions in the 4-hour chart, penetrating the 50-period simple moving average (SMA) and moving towards the 100-period SMA. From the technical viewpoint, the RSI is falling beneath the neutral threshold of 50, while the MACD is losing momentum below its trigger line. More losses could take the index towards the 38.2% Fibonacci retracement level of the up leg from 24,556 to 27,171 at 26,174, which overlaps with the [..]

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.