Fibonacci

Technical Analyst – NZDUSD moves to bottom of recent range

Posted on February 29, 2016 at 3:08 pm GMT

NZDUSD has been trading within a range between 0.6544 and 0.6773 since early February but moved towards the lower bound of the range today as it started the week sharply down from Friday’s close. The bottom of the range corresponds with the 38.2% Fibonacci retracement level (0.6550) of the December-January downleg from 0.6882 to 0.6346. RSI has dipped just below 50 following the sell-off of the last two days, though the MACD still has some momentum above 0, suggesting the [..]

Technical Analysis – EURAUD loses momentum but remains on uptrend

Posted on February 17, 2016 at 3:10 pm GMT

EURAUD has declined by almost 4% from the February 11 high of 1.6250 when it had retraced about 85% of the August-December downleg from 1.6562 to 1.4344. It’s been struggling to hold above the 61.8% Fibonacci retracement level for the second day. The 61.8% Fibonacci level at around 1.5710 has previously acted as a closing resistance level and could again cap the pair’s advance in the near term on weakening momentum. RSI is looking neutral after levelling off around 50, [..]

Technical Analysis – NZDUSD bias turns positive again

Posted on February 15, 2016 at 3:08 pm GMT

NZDUSD is attempting to recoup some of Friday’s sharp losses, gaining 0.8% on the previous close. Today’s rally was capped by the 61.8% of the Fibonacci retracement level of the December-January downleg from 0.6882 to 0.6346. With RSI trending up above 50 and the MACD turning positive, there is scope for further gains in the near term. Prices would need to break above the 61.8% Fibonacci level at 0.6675 and cross above the 200-day moving average to sustain the current [..]

Technical Analysis – EURGBP continues uptrend after double bottom pattern

Posted on February 11, 2016 at 8:14 am GMT

EURGBP is continuing the uptrend after the formation of the double bottom trend reversal pattern. The shift to a bullish trend was confirmed after the market broke above the key 0.7500 level in January and prices are now targeting the 50% Fibonacci retracement level at 0.7870. This is the retracement of the downleg from 0.8813 to 0.6936 (February 2013 to July 2015 low). Once this resistance level is breached, a continuation up toward the 0.8000 level could be seen next. [..]

Technical Analysis – USDCHF finds support at 200-DMA on bearish shift

Posted on February 9, 2016 at 3:12 pm GMT

USDCHF extended its losses for a seventh day, dropping to 3½-month lows. The pair found support at the 200-day moving average where it bounced off a low of 0.9717. The pair has retraced about 55% of the August-November upleg from 0.9257 to 1.0327, taking it below the Ichimoku cloud in the process. Momentum indicators are pointing to strong downside bias but with RSI just above the oversold level and the stochastics already in that territory, further losses may be limited. [..]

Technical Analysis – EURUSD back above 200-DMA as bias turns bullish

Posted on February 8, 2016 at 10:49 am GMT

EURUSD is attempting another upside push today but remains below last week’s peak when it rallied above the 200-day moving average. The weekly gains took it just below the 61.8% of the Fibonacci retracement level of the August – December downleg. The 61.8% retracement level is likely to act as resistance level around 1.1255. Further gains are possible in the near term as the MACD has turned positive again and RSI is holding strong just below overbought level. In the [..]

Technical Analysis – GBPCAD at risk of trend reversal

Posted on February 8, 2016 at 9:47 am GMT

GBPCAD has been trading in a range since mid-2015, between 1.9800 and 2.0970. If the important support level at 1.9800 is broken to the downside, this will confirm the formation of a double top chart pattern, which is a trend reversal pattern. Such a move would reverse the uptrend that was in place since the beginning of January 2013. The 38.2% Fibonacci retracement level at 1.9887 is acting as immediate support. This is the retracement level of the rise from [..]

Technical Analysis – NZDJPY regains upside momentum but still below 50-day MA

Posted on February 3, 2016 at 2:49 pm GMT

NZDJPY has retraced about 60% of the December-January downleg from 82.85 to 73.63. The pair found resistance at the 61.8% Fibonacci retracement level at around 79.30 two days ago and is making another advance towards the level today. Near term indicators are bullish with RSI rising above 50 and the stochastics just above overbought level. The medium-term outlook remains bearish though as prices remain below the Ichimoku cloud and the moving averages. The 50-day moving average is the next resistance [..]

Technical Analysis – EURUSD sees more downside pressure, remains inside Ichimoku cloud

Posted on January 13, 2016 at 8:19 am GMT

EURUSD has seen some downside pressure this week, bringing the pair to the lower end of the 1.08 handle. There is a barrier to the upside around 1.0850 and this is the 38.2% retracement of the December bullish run from 1.0520 to 1.1058. The technical outlook is neutral-to-bearish, given that the market remains below the 200-day moving average and prices are stuck inside the daily Ichimoku cloud. The tenkan-sen has crossed below the kijun-sen line, giving a bearish signal. Momentum [..]

Technical Analysis – USDJPY stabilizes above 119 but bearish signals strong

Posted on January 5, 2016 at 8:02 am GMT

USDJPY stabilized on Tuesday after reaching 2-1/2 month lows on Monday at 118.69. Sustained trading below the 118.05 October low would expose the 116.11 August low for a retest. The technical indicators are giving bearish signals. The tenkan and kijun lines are negatively aligned and are both pointing south, meaning current downside momentum is very negative in the near term. The level of 119.27 is important – it is the 76.4% Fibonacci retracement of the 118.05-123.74 (October/November) rise. A close [..]

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