Technical Analysis

Technical Analysis – USDCAD trapped below trendline; targets June’s lows

Posted on July 24, 2020 at 7:28 am GMT

USDCAD was forced to shift south after the descending trendline and the 23.6% Fibonacci level of the 1.4667-1.3314 downleg held firm once again, with the price tumbling as low as 1.3350 on Thursday. The pair is currently consolidating its losses near the 1.3380 support area but the technical indicators suggest that the bears have not abandoned the sell-off yet; the MACD is strengthening to the downside and below its red signal line, while the RSI remains comfortably below its 50 neutral [..]

Technical Analysis – EURJPY retreats after reaching 7-week high

Posted on July 23, 2020 at 12:33 pm GMT

EURJPY is on the sidelines after it reached a fresh seven-week high around 124.28 and it looks ready for a possible pull back. Technically, the RSI is returning lower after it climbed to the overbought zone, while the stochastic is heading south, both hinting for a downside retracement in the very short-term. Despite those signals, the short-term simple moving averages and the Ichimoku indicator are still suggesting an upside tendency. Immediate support to further declines may be taking place around [..]

Technical Analysis – USDCHF surrenders to bears; nearby support eyed

Posted on July 23, 2020 at 10:44 am GMT

USDCHF is bearishly exposed to the nearby 0.9258 support level after failing to crawl above the 61.8% Fibonacci retracement level of the March rally last week. The technical indicators are framing a discouraging picture for the short-term too, as the price is further deviating below the downward-sloping 20-day simple moving average (SMA) and the MACD is gaining negative momentum below its red signal line. The falling RSI, which is ready to cross below its 30 oversold mark is another negative [..]

Technical Analysis – GBPJPY rebounds within symmetrical triangle

Posted on July 23, 2020 at 9:23 am GMT

GBPJPY curved up near the 20-day simple moving average (SMA) and the lower line of a big symmetrical triangle and towards a 6-week high of 136.60. The price also managed to close slightly above the 50% Fibonacci retracement level of the 147.94-124.00 downleg on Wednesday, increasing the odds for another upturn. However, the upper part of the triangle is only a short distance away and with the help of the 200-day SMA near 137.38 it could damper any bullish actions. [..]

Technical Analysis – Gold tests 9-year high of 1,878; strongly positive

Posted on July 23, 2020 at 8:35 am GMT

Gold prices are flirting with the nine-year high of 1,878 again, endorsing the strong bullish structure. The RSI indicator is pointing north in the overbought territory, while the MACD is extending its upside movement above its trigger and zero lines in the short-term timeframe. Furthermore, the simple moving averages (SMAs) and the Ichimoku indicators are following the price action up. If the yellow metal strengthens its six-week bullish structure above the multi-year high of 1,878, it could touch the September 2011 high of 1,920. This [..]

Technical Analysis – AUDUSD breaks above pre-virus levels and into overbought zone

Posted on July 23, 2020 at 7:18 am GMT

AUDUSD has successfully completed a V-shaped recovery from 17-year lows, unclocking a 15-month high of 0.7181 on Wednesday that is above its pre-crisis levels. The recent improvement has also violated the long-term downtrend that started from the 2018 peak of 0.8135, with the golden cross within the 50- and 200-day simple moving averages (SMAs) adding credence to the advance. The RSI and the Stochastics, however, have already entered the overbought territory, flagging that the bears might be around the corner. But the indicators have yet to hit a [..]

Technical Analysis – EURUSD advances to almost 2-year peak near 1.1600

Posted on July 23, 2020 at 7:15 am GMT

EURUSD extended its bullish rally towards a fresh almost two-year high around the 1.1600 psychological mark on Wednesday before it lost some gains. From the technical viewpoint, the MACD oscillator is losing some momentum, but is still standing above its trigger line and well above its zero line in the short-term timeframe. The stochastic oscillator despite the drop from the overbought zone – which indicates downside retracement – is now creating a bullish crossover with its trigger and zero lines, [..]

Technical Analysis – Silver rallies like there is no tomorrow; bias cautiously bullish

Posted on July 22, 2020 at 2:40 pm GMT

Silver accelerated like there is no tomorrow to a seven-year high of 23.00 in just two days, and after breaching a soft descending trendline and the 19.63 peak from September 2019. The staggering move drove the RSI and Stochastics to overbought territory, hence downside corrections should not be surprising in the short-term. Still, the industrial metal managed to secure significant ground and put itself back to a positive path, and any pullback should be substantial in order to push the [..]

Technical Analysis – EURGBP ticks up in ascending channel

Posted on July 22, 2020 at 1:09 pm GMT

EURGBP has been in a slightly bullish channel over the last three months, rebounding on the 20-day simple moving average (SMA). The RSI is heading higher above the neutral threshold of 50, while the MACD is strengthening its momentum near its trigger line, marginally above the zero line. The 20- and 40-day simple moving averages (SMAs) are moving marginally higher as well, along with the Ichimoku lines. Immediate resistance is coming from the 0.9180 barrier, taken from the latest high, before [..]

Technical Analysis – USDJPY in neutral mode, but some bullish signals detected

Posted on July 22, 2020 at 12:22 pm GMT

USDJPY could not retain its strength above the 107.40 barrier which looks to be the neckline of a double bottom pattern in the four-hour chart, with the price reversing lower instead. While the RSI and the MACD remain muted near their neutral levels, providing little evidence that the pair could pick up momentum, the formation of a bullish hammer candlestick on Friday followed by a sizable green candle suggests that the bulls have not put the guns down yet. A close above the 107.40 neckline and the 200-period simple moving [..]

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