Technical Analysis

Technical Analysis – Gold edges sideways, confined by SMAs

Posted on January 25, 2021 at 9:05 am GMT

Gold is consolidating around its 200-day simple moving average (SMA), after recently collapsing from the resistance ceiling of 1,960-1,974, which has been curbing gains since early September 2019. The converging SMAs and their fairly reduced gradients are fuelling a more neutral demeanour in the commodity. The short-term oscillators are suggesting directional momentum has somewhat dried up but are leaning ever so slightly towards the downside. The MACD, marginally underneath zero, is merely below its red trigger line, while the RSI [..]

Technical Analysis – EURUSD faces big challenge around SMAs in ascending channel

Posted on January 25, 2021 at 8:03 am GMT

EURUSD rebounded on the 1.2050 support level on January 18, flirting now with the 20- and 40-day simple moving averages (SMAs). In the broader outlook, the price has been developing within an upward sloping channel since June 2020. Looking at the technical indicators, the stochastic is moving towards the overbought territory, suggesting a strong bullish action, however, the RSI is standing marginally above the 50 level. In case of an upward attempt above the SMAs, the pair would likely meet [..]

Technical Analysis – US dollar index retreats again near 90.00; bearish in long-term

Posted on January 22, 2021 at 11:19 am GMT

The US dollar index is recording a strong sell-off since March 2020, creating a 33-month low around 89.14. Zooming at the last seven-weeks, the price is moving sideways, finding strong resistance at the 90.93 barrier and the 50-day simple moving average (SMA). This week, the index is on the backfoot and the technical indicators suggest that the market could ease a little bit in the short-term. The stochastic oscillator is approaching the oversold territory again, while the MACD is heading [..]

Technical Analysis – GBPUSD’s bullish tone withstands powerless pullback

Posted on January 22, 2021 at 11:07 am GMT

GBPUSD’s recent retreat is nearing the 50-period simple moving average (SMA) at 1.3647 and so far appears to be incapable of hurting the bullish tone in the pair. The upwards creeping red Tenkan-sen line and the steadily climbing SMAs are promoting further advances in price. However, the flattening blue Kijun-sen line and the short-term oscillators are endorsing the retraction in the pair. The MACD, some distance above zero, has plunged under its red trigger line, while the decreasing RSI has [..]

Technical Analysis – NZDUSD fluctuates around MAs but upside risks remain

Posted on January 22, 2021 at 9:02 am GMT

NZDUSD’s slide back under the 100-period simple moving average (SMA) at 0.7196 seems to have cemented the price within the confines of 0.7082-0.7240 of a sideways move. The range-bound demeanour, after the price retracted from the multi-year high of 0.7314, appears to be nourished by the impaired and flattening 50-period SMA and the slowing upward pace of the 100- and 200-period SMAs. The short-term oscillators are currently nurturing bearish scenarios. The MACD, above the zero mark, is easing towards its [..]

Technical Analysis – GBPJPY rests near 4½-month high; remains in bullish channel

Posted on January 22, 2021 at 8:34 am GMT

GBPJPY has been moving higher within an upward sloping channel over the last four months, remaining above the 20- and 40-day simple moving averages (SMAs). The price reached a four-and-a-half-month peak around 142.40, however, the technical indicators are mixed. The MACD is moving horizontally in the positive territory, while the stochastic is turning slightly lower after the bullish crossover within the %K and %D lines. An advance above the 142.40 resistance could take the pair towards the 144.95 barrier, registered in February 2020, [..]

Technical Analysis – USDCAD calls for an upside reversal after new 33-month low

Posted on January 22, 2021 at 8:32 am GMT

USDCAD stretched its March downtrend to a fresh 33-month low of 1.2588 on Thursday before completing the day with a bullish doji candle. The positive candle formation is an indication of a coming upside breakout, which the price is currently pushing to confirm, as it is recovering towards its 20-day simple moving average (SMA) at 1.2719. With the RSI distancing itself above its 30 oversold level and the MACD, although negative, hovering above its red signal line, an upside correction [..]

Technical Analysis – USDCHF’s bullish pressures pause around vicinity of 200-MA

Posted on January 21, 2021 at 1:54 pm GMT

USDCHF has poked back underneath the 200- and 100-period simple moving averages (SMAs) at 0.8866 and 0.8857 respectively. Its recent attempts to decisively surpass the 200-period SMA have ended up consolidating the price around it, thus keeping hopes of the bear market alive. The flattening 100-period SMA and the falling 200-period SMA, as well as the slowing upward pace of the 50-period SMA, all as a whole, are endorsing the sideways move. The short-term oscillators, which are leaning towards the [..]

Technical Analysis – US 100 index celebrates Biden’s presidency at a fresh record high

Posted on January 21, 2021 at 12:06 pm GMT

The US 100 stock index (cash) popped to a fresh record high of 13,397 in the first day of Joe Biden’s presidency after finding a strong footing around the red Tenkan-sen line. With the RSI approaching its former peaks around the 70 overbought mark and the price hovering around the 161.8% Fibonacci extension of its latest pullback at 13,368, a downside reversal towards the swing high of 13,126 and the red Tenkan-sen line is likely in the near-term. The 20-day [..]

Technical Analysis – EURJPY faces big challenge around 125.50; lacks direction in medium-term

Posted on January 21, 2021 at 11:04 am GMT

EURJPY has gained little over the last sessions but it is still holding below the 20-period simple moving average (SMA). The technical indicators are feeding prospects for a negative short-term trading; the RSI holds below the 50 level, while the MACD is slipping beneath its trigger line. A failure to overcome the 20-period SMA could send the price down to 125.07-125.25, a challenging point over the last three days. Lower support could be next found around the 124.30 support and the [..]

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