Technical Analysis

Technical Analysis – EURCHF runs above SMAs but Ichimoku cloud acts as strong resistance

Posted on July 14, 2020 at 1:29 pm GMT

EURCHF staged a respectful bullish rally following the bounce off the 100-day simple moving average (SMA) around the 1.0595 support. In the very short-term, the positive bias is confirmed by the momentum indicators. The RSI is climbing above the 50 level, while the MACD, having crossed above its trigger line in the negative region, is trying now to surpass the zero line. Should the price close comfortably above the lower surface of the Ichimoku cloud and the blue Kijun-sen line around the 1.0710 resistance, buyers could push towards 1.0767. Higher, [..]

Technical Analysis – EURJPY advances eyeballed; positive momentum suspended

Posted on July 14, 2020 at 8:21 am GMT

EURJPY is struggling to overcome the region around the 122.00 mark in spite of assisting positive signals. The recent progress from the 200-day simple moving average (SMA) appears postponed just below this constricting 122.00 handle, where the upper Bollinger band is currently located. The gradual inclines in the 100- and 200-day SMAs and the nearing of a bullish crossover of the latter, by the rocketing 50-day SMA, may boost the positive picture in the near-term. Further positive signals are hinted [..]

Technical Analysis – GBPUSD’s positive momentum could fade; indicators are flat

Posted on July 14, 2020 at 7:13 am GMT

GBPUSD has been moving sideways since the rebound off the 35-year low of 1.1409 on March 20, holding in an upward sloping channel. In the short-term, the market could maintain consolidation if the RSI keeps moving around 50 and the red Tenkan-sen line, as well as the blue Kijun-sen line, hold flat. Also, the MACD oscillator is moving marginally above zero level with weak momentum. An extension to the upside and above the 61.8% Fibonacci retracement level of the down leg from [..]

Technical Analysis – GER 30 index stalls appreciation above SMAs; momentum slows

Posted on July 13, 2020 at 3:27 pm GMT

Germany 30 Index (Cash) seems skewed to the upside as the price has moved above the rising simple moving averages (SMAs) and the Ichimoku cloud. Although the sideways market looks to be tipping towards the upside, it is currently on weak positive momentum, something also reflected in the Ichimoku lines and the short-term oscillators. The MACD, is holding above its red trigger line in the positive area with weak momentum, while the RSI gradually points higher in the positive region. [..]

Technical Analysis – AUDUSD still consolidating; unable to break above upper channel

Posted on July 13, 2020 at 12:34 pm GMT

AUDUSD has been consolidating since June 16 and has been stuck in a channel tilted slightly to the upside. The neutral to bullish picture in the short term looks to last for a while longer after prices failed to break above the upper channel earlier this month. Resistance was met at around the 0.7000 psychological region after prices surpassed the simple moving averages (SMAs) and the Ichimoku cloud. The slightly bullish bias in the near term is supported by the [..]

Technical Analysis – US 500 index creeps higher; intentions appear positive

Posted on July 13, 2020 at 12:31 pm GMT

US 500 stock index (Cash) recently displayed a positive objective after finding a foothold on the 100-period simple moving average (SMA) and the upper surface of the Ichimoku cloud. The one-month neutral-to-bullish picture seems to have gained backing from the climbing SMAs and the recent bullish crossover by the 50-period SMA. Adding to this view are the positive signals reflected in the short-term oscillators. The MACD, in the positive region, is increasing above its red trigger line, while the RSI [..]

Technical Analysis – USDJPY attempts to meet mid-Bollinger band; neutral bias

Posted on July 13, 2020 at 10:32 am GMT

USDJPY produces an upward attempt above the 23.6% Fibonacci retracement level of the down leg from 109.85 to 106.07 at 106.95, turning the momentum indicators to the upside. Technically, the stochastic oscillator is heading north in the overbought zone, while the RSI is pointing higher in the negative territory. However, the moving averages are sloping down with the mid-level of the Bollinger band creating a negative cross with the 100-period simple moving average (SMA) in the very short-term. More upside [..]

Technical Analysis – Gold seems unstoppable, positive direction intact

Posted on July 13, 2020 at 7:46 am GMT

Gold maintains a healthy bullish bearing despite having slightly pulled back after plotting a fresh more than 8½-year high of 1,817.89. The pair’s retreat from the upper Bollinger band is also reflected in the stochastic oscillator, which displays some weakening in positive momentum, as the %K line completed a bearish crossover of the %D line, dipping from the overbought region. Nevertheless, the predominant positive charge in the simple moving averages (SMAs) suggests a well-defined course northwards. Moreover, the MACD and [..]

Technical Analysis – EURUSD fails to increase bullish bias; indicators are weak

Posted on July 13, 2020 at 7:00 am GMT

EURUSD has been trading sideways over the last month failing to improve the bullish rally that started from the 1.0870 support. Currently, the pair is standing above the 20-day simple moving average (SMA), however, the red Tenkan-sen line dropped beneath the blue Kijun-sen line, suggesting a possible downside retracement. Looking at the momentum indicators, the MACD is hovering near the trigger line in the positive region, while the RSI is marginally sloping up above the 50 level in the short-term [..]

Technical Analysis – NZDUSD attempts to restore positive sentiment

Posted on July 10, 2020 at 10:57 am GMT

NZDUSD appears to be strengthening after finding a footing on the 40-period simple moving average (SMA), which may enhance the very short-term neutral-to-bullish picture. Although the positive momentum in the MACD and the Ichimoku lines has stalled, the rising SMAs, RSI and stochastic oscillator endorse further gains. The RSI is improving after bouncing on the 50 threshold, while the %K line has completed a bullish crossover out of oversold territory, promoting advances. If buying interest intensifies, early resistance may develop [..]

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.