Technical Analysis

Technical Analysis – EURJPY signals downtrend continuation within channel

Posted on June 18, 2020 at 12:20 pm GMT

EURJPY posted another lower low at 119.81 after crossing below the trendline that has been supporting the rebound from the 3½-year trough of 114.42, raising speculation that the market may keep trending within a downward-sloping channel. The break below the Ichimoku cloud and the RSI’s bearish location is another discouraging signal. Currently the 120.50 former support area and the red Tenkan-sen line are restricting upside movements and should they push the price below the 120.00 level, negative momentum could strengthen [..]

Technical Analysis – WTI oil futures support bullish view above 36.00

Posted on June 18, 2020 at 11:10 am GMT

WTI oil futures for July delivery maintain a clear positive structure reflected by the higher highs and the higher lows since late April, with the price printing another higher trough at 34.35 last week. Now it remains to be seen if the outlook can improve beyond the 40.42 peak, which is likely given the recent rebound in the RSI. For that to happen, the 50% Fibonacci of the downleg from 65.61 to 6.62 and the 20-day simple moving average (SMA) [..]

Technical Analysis – USDCHF bears may lose their nerve in short-term

Posted on June 18, 2020 at 8:00 am GMT

USDCHF has been consolidating inside the 0.9433-0.9550 area over the past week, not far from the 50% and 61.8% Fibonacci retracement levels of the upleg with a low at 0.9191 and a top at 0.9900. With the MACD easing negative momentum in the bearish area and the flat RSI refusing to return to its 30 oversold mark, the pair could see a more encouraging course in the short-term. Note that a long-legged bullish doji has been created below the lower Bollinger [..]

Technical Analysis – AUDUSD cautiously positive after pullback stalls uptrend

Posted on June 18, 2020 at 7:52 am GMT

AUDUSD appears paused after having pivoted from a formed nearly 11-month peak of 0.7064, something also reflected in the flattened Ichimoku lines. Although the tone of the 50-, 100-day simple moving averages (SMAs) and the Ichimoku lines sponsor an improving picture, the short-term oscillators reflect weakening positive momentum. The MACD, deep in the positive zone, is declining below its red signal line, while the RSI drops in bullish territory. If sellers maintain control and the support section of 0.6749 – [..]

Technical Analysis – NZDJPY maintains neutral bias but risks are to the downside

Posted on June 17, 2020 at 2:58 pm GMT

NZDJPY is extending its sideways trading in the four-hour chart, trailing the lower bound of the Ichimoku cloud. The 20-period moving average (MA) is flatlining in the same region, providing additional support against downward attempts. The momentum indicators further underline the neutral short-term picture, though with the RSI glued slightly below the 50 level and the MACD hovering just below zero, a downside break is more likely than an upside one. Should NZDJPY face fresh selling pressure and slip below [..]

Technical Analysis – USDCHF rebounds, but downtrend still in play

Posted on June 17, 2020 at 1:34 pm GMT

USDCHF recovered somewhat after touching a three-month low of 0.9375, but the rebound has been capped by the 50-period simple moving average (SMA) on the four-hour chart, and negative forces seem to have taken over again. The broader picture is still bearish, with the pattern of lower highs and lower lows not broken by the latest rebound. Momentum oscillators like the RSI and the MACD are both near their neutral levels, not revealing much about the next directional wave. If [..]

Technical Analysis – EURAUD selling interest in play; indicators in negative territory

Posted on June 17, 2020 at 12:48 pm GMT

EURAUD is continuing its aggressive selling interest from the eleven-year peak of 1.9800, achieved on March 19. The price is still moving below the short-term simple moving averages (SMAs) and the stochastic posted a bearish crossover within its %K and %D lines. However, the MACD is gaining some ground above its trigger line but remains below the zero level. Should the market extend losses, support could be met between the five-month low of 1.6017 and the 1.5890 obstacle. Then, if [..]

Technical Analysis – GBPJPY’s latest pullback consolidates around mid-Bollinger band

Posted on June 17, 2020 at 12:17 pm GMT

GBPJPY appears stalled at the 134.45 barrier – that being the 50.0% Fibonacci retracement of the down leg from 144.94 to 123.97, following the latest deflection on the upper Bollinger band. The present conflicting slopes of the 50- and 100-period simple moving averages (SMAs) and the mostly horizontal bearing of the 200-day SMA, reflect the neutral tone that exists in the pair. At this point in time, the short-term oscillators reflect no clear direction in the price. The MACD, in [..]

Technical Analysis – US 100 index turns its gaze back to record highs

Posted on June 17, 2020 at 11:32 am GMT

The US 100 cash index (Nasdaq) suffered a small setback last week, after reaching a fresh record high of 10,155, but has since recovered most of its losses. The structure of higher highs and higher lows on the daily chart remains intact, which alongside the upward-sloping simple moving averages (SMAs), keeps the outlook positive. A new all-time high above 10,155 would reaffirm the uptrend. Short-term momentum oscillators concur. The RSI – already above 50 – looks to be headed for [..]

Technical Analysis – EURGBP retains neutral mode; approaches 0.9000

Posted on June 17, 2020 at 10:07 am GMT

EURGBP has been developing within a consolidation area since May 15, despite the upside penetration at the end of the previous month. Looking at the last few days, the pair is extending a bullish move above the Ichimoku cloud and the 23.6% Fibonacci retracement level of the up leg from 0.8670 to 0.9055 at 0.8963, heading towards the 0.9000 psychological mark. The RSI is moving sideways above the neutral threshold of 50, while the stochastic entered the overbought zone. A [..]

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