Technical Analysis

Technical Analysis – NZDUSD bears need trendline breakout to take control

Posted on June 17, 2020 at 7:25 am GMT

NZDUSD is smoothly curving up along a short ascending trendline following the slight pullback from the 5 ½-month high of 0.6854 last week. According to the RSI and the MACD, the pair continues to seek new lows as the former has already topped its 70 overbought mark and reversed lower, while the latter continues to decelerate below its red signal line. Technically, however, only a break below the trendline could bring more sellers on board and push support towards the [..]

Technical Analysis – Gold in the process of head and shoulders pattern; neutral bias

Posted on June 17, 2020 at 7:18 am GMT

Gold prices have been consolidating over the last week, currently stuck in a sideways channel. Looking at the past three weeks, the yellow metal has been creating an inverse head and shoulder pattern with a significant neckline near 1,746. A successful climb above the neckline may change the recent bearish bias to bullish in the short-term. Resistance was met at around the 1,729 region, being the 61.8% Fibonacci retracement level of the down leg from 1,765 to 1,671 after prices hit the 38.2% Fibonacci, forcing the commodity to reverse [..]

Technical Analysis – USDJPY consolidates below the moving averages

Posted on June 17, 2020 at 7:14 am GMT

USDJPY has settled at the Ichimoku cloud’s upper surface after pivoting from a produced low of 106.57 near the bottom band of the cloud. The recent surge was neutralised, returning the pair back below the simple moving averages (SMAs) and around the 107.25 mark. The horizontal 100- and 200-day SMAs and the flattened Ichimoku lines reflect the directionless market that has now extended for roughly two months. Furthermore, the short-term oscillators also display a state of evaporated momentum. The MACD, [..]

Technical Analysis – JP 225 index restores positive tone with bounce off 23.6% Fibonacci

Posted on June 16, 2020 at 1:47 pm GMT

JP 225 stock index (Cash) yesterday bounced off the 21,431 mark, that being the 23.6% Fibonacci retracement of the up leg from 15,384 to 23,302, resuming the uptrend by climbing above the 200-day simple moving average (SMA). The Ichimoku lines and the short-term oscillators, although reflecting the recent pullback, continue to back an improving picture overall. The MACD, despite falling below its red trigger line, remains deep in bullish territory, while the RSI is rising above its 50 level. Additionally [..]

Technical Analysis – US dollar index stops below 23.6% Fibo; negative risks not faded yet

Posted on June 16, 2020 at 12:51 pm GMT

The US dollar index touched the 23.6% Fibonacci retracement level of the down leg from 103.80 to 95.60 at 97.52 and retreated lower, heading towards the three-month low. The MACD is flattening below the trigger and zero lines, while the RSI is sloping down in the negative zone in the short-term. Also, the 20-day simple moving average (SMA) created a bearish crossover with the 40- and 200-day SMAs. A continuation of the bearish structure could open the door for the [..]

Technical Analysis – EURCHF stuck under the 200-day SMA; may edge sideways

Posted on June 16, 2020 at 11:08 am GMT

EURCHF appears to have returned to a neutral stance, following the recent rallies pullback from the 1.0914 point back under the 200-day simple moving average (SMA). The Ichimoku lines and cloud sponsor consolidation in price, as does the flattened 100-day SMA. The MACD and the RSI reflect a stall in price action with weakened positive momentum. The MACD is falling below its red signal line in the positive zone, while the RSI hovers above the 50 threshold. Nevertheless, the bullish [..]

Technical Analysis – USDCAD stalls above 23.6% Fibo; neutral in very short term

Posted on June 16, 2020 at 9:19 am GMT

USDCAD is trading around the vicinity of 1.3575, that being the 20-period simple moving average (SMA) after the rebound on the 23.6% Fibonacci retracement level of the bearish move from 1.4170 to 1.3315 at 1.3518. Looking to the short-term oscillators, the stochastic and the RSI promote slight improvements, despite diminished directional momentum. The stochastic is creating a bullish crossover within the %K and %D lines in the oversold zone, while the RSI is sloping north near the 50 level. Also, [..]

Technical Analysis – EURJPY bounces on 20-day SMA but caution remains

Posted on June 16, 2020 at 8:09 am GMT

EURJPY charted a higher high at a 13-month peak of 124.42 early this month, increasing speculation that the long-term downtrend started in 2018 has reached a bottom. Although the peak took the form of a bearish doji in the end of the day, pressuring the price to 120.24 in the subsequent sessions, the 20-day simple moving average (SMA) and a steep ascending trendline drawn from the 114.42 low managed to halt the downfall this week and push the price back north. With the MACD [..]

Technical Analysis – GBPUSD up against restraining 200-day SMA

Posted on June 16, 2020 at 7:23 am GMT

GBPUSD yesterday found a foothold on the mid-Bollinger band presently at the 1.2461 level, that being the 50.0% Fibonacci retracement of the down leg from 1.3514 to 1.1410. The flattened 200-day simple moving average (SMA) at 1.2683 and the 61.8% Fibo of 1.2711 overhead (forming a vital resistance area) are obstructing upside price actions. The short-term oscillators endorse some improvement in price as does the strengthening slope of the 50-day SMA. The MACD in the positive region has moved back [..]

Technical Analysis – WTI futures fail to conquer 40-SMA; holds within narrow Bollinger band

Posted on June 16, 2020 at 7:10 am GMT

WTI oil futures over the last few sessions – as positive momentum evaporated – were unable to decisively overrun the 40-period simple moving average (SMA), remaining within the squeezed Bollinger bands that are suggesting an aggressive move if there is an exit of the channel. The short-term oscillators suggest a neutral mode for now. The MACD, in the negative region, has jumped above its red trigger line, while the rising RSI has just moved above its neutral mark. That said, the [..]

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