forex

Technical Analysis – GBPCHF trades near 5-month low; bearish correction in progress

Posted on August 6, 2018 at 12:58 pm GMT

GBPCHF recorded an aggressive bearish rally following the pullback on the 1.3270 resistance level, posting a five-month low of 1.2886 on Monday. Since the previous week, the pair is on the backfoot and the technical indicators suggest that the marker could ease further in the short-term. The negative bias in the near term is supported by the deterioration in the momentum indicators. The %K line of the stochastic oscillator has fallen sharply into oversold levels, while the RSI and the [..]

Technical Analysis – EURUSD stands in consolidation mode; further losses are expected

Posted on August 6, 2018 at 6:25 am GMT

EURUSD has been underperforming in the past four days, breaking back below the 20- and 40-simple moving averages in the daily timeframe. The world’s most traded currency is ready to create a consolidation area if it touches again the 1.1510 – 1.1530 zone and reverses back up. The upper boundary of the channel is the 1.1750 resistance level, which stands near the 23.6% Fibonacci retracement level of the downleg from 1.2550 to 1.1510. Momentum indicators are pointing to a negative [..]

Technical Analysis – EURCAD posts 2-month low, looks bearish in the medium-term

Posted on August 3, 2018 at 12:39 pm GMT

EURCAD has lost considerable ground after touching a three-month high of 1.5585 in late June. Earlier on Friday, it hit a two-month low of 1.5061. The Tenkan- and Kijun-sen lines are negatively aligned in support of a bearish bias in the short-term. The RSI, which has been declining in recent weeks, also points to negative momentum, though notice as well that the indicator is relatively close to the 30-ovesold level; a move below 30 may indicate an overextended selloff. If the [..]

Week Ahead – UK and Japan next to report GDP figures; RBA and RBNZ rate decisions eyed

Posted on August 3, 2018 at 12:17 pm GMT

There will be a continuation of the central bank and Q2 GDP theme in the next seven days as interest rate decisions will be awaited out of Australia and New Zealand, while the United Kingdom and Japan will publish growth figures. Monthly data on trade balance and industrial output will also be in focus, along with Canadian employment and US inflation numbers. RBA and RBNZ to stand pat again It will be the turn of the Reserve Bank of Australia [..]

Technical Analysis – GBPJPY gains some ground; remains below moving averages in near term

Posted on August 3, 2018 at 11:45 am GMT

GBPJPY is trading slightly higher over the past few hours after the rebound on the 145.00 psychological level. The price is trying to gain some ground; however, it is still developing below the 20- and 40-simple moving averages in the 4-hour chart. The Relative Strength Index (RSI) is currently increasing positive momentum towards its neutral threshold of 50, while the stochastic oscillator is moving higher, both hinting that the next move in prices could be on the upside rather than on the downside. If the pair [..]

Technical Analysis – USDCAD turns to bearish correction but maintains in upward trend

Posted on August 3, 2018 at 6:44 am GMT

USDCAD formed a fresh seven-week bottom at 1.2974 on August 1 in the daily timeframe after the downfall below the strong obstacle of the 23.6% Fibonacci retracement level of the upleg from 1.2060 to 1.3385, around 1.3074. The pair seems to be in a bearish correction mode as the technical indicators are confirming the scenario for a possible downside pressure. The RSI and the MACD have both weakened, with the former sloping slightly up below the 50 level and the latter [..]

UK Services PMI to revert to slower gear in July; unlikely to prove a big driver for pound – Forex News Preview

Posted on August 2, 2018 at 1:13 pm GMT

After the highly anticipated Bank of England decision on Thursday, the focus for sterling at the end of the week will turn to the services PMI out of the United Kingdom on Friday at 08:30 GMT. The IHS Markit/CIPS services PMI is expected to highlight the BoE’s dilemma, with activity in the sector expected to expand only moderately even as the Bank presses with a rate hike – its second since the global financial crisis. While a modest rebound in [..]

Technical Analysis – EURGBP looking bullish in near term; weak trend in medium term

Posted on August 2, 2018 at 12:57 pm GMT

EURGBP has advanced considerably over the last few hours and jumped above the 0.8900 handle. Price action is at the momentum taking place above the 20- and 40-simple moving averages in the daily timeframe. The technical picture supports that the rebound on 0.8865 is likely to continue in the short-term. From the technical point of view, the Relative Strength Index (RSI) is pointing upwards and is standing in the positive territory, however, the MACD oscillator dropped below its trigger line [..]

Technical Analysis – NZDUSD drops below 23.6% Fibonacci; holds in trading range in short term

Posted on August 2, 2018 at 7:03 am GMT

NZDUSD has come under renewed selling pressure over the last couple of days, falling back below the 23.6% Fibonacci retracement level of the downleg from 0.6686 to 0.7060, around 0.6775. Also, the pair is touching the lower Bollinger Band, however, it has not posted a fresh lower low, which makes one hesitant to trust further declines for now. It is worth mentioning that the price has been holding within a trading range since early July with upper boundary the 0.6850 resistance and lower boundary the 0.6712. [..]

Technical Analysis – USDJPY ready to touch ascending trend line; remains positive in medium term

Posted on August 2, 2018 at 6:44 am GMT

USDJPY has been moving lower since yesterday’s trading session following the pullback on the 112.15 level. The prices seem to be in progress to hit the medium-term ascending trend line as they slipped below the 20-day simple moving average (SMA). The short-term technical indicators are bearish and point to more weakness in the market. Having a look at the momentum indicators, the RSI is moving south above the threshold of 50, while the MACD oscillator dropped below its trigger line and is [..]

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