forex

Technical Analysis – AUDJPY looking bearish in the short-term despite move off 1½-year low

Posted on March 26, 2018 at 10:25 am GMT

AUDJPY has shed 7.5% year-to-date and is currently trading around 80 pips above the near one-and-a-half-year low of 80.49 hit last Friday. Despite today’s rebound, the negatively aligned Tenkan- and Kijun-sen lines continue to project a bearish short-term picture for the pair. It is of note that the Chikou Span might be hinting to a somewhat oversold market, rendering today’s recovery “justifiable”. The pair might be meeting resistance around 81.48 – a previous bottom – at the moment, with an [..]

Technical Analysis – USDJPY hits fresh 16-month low; bearish in the short- and medium-term

Posted on March 23, 2018 at 1:49 pm GMT

USDJPY has experienced considerable declines in recent days and in the bigger picture the pair has shed 7.6% since reaching a four-month high of 113.74 on December 12. Earlier in Friday’s trading, USDJPY posted a 16-month low of 104.63. The Tenkan- and Kijun-sen lines are negatively aligned, projecting a bearish short-term picture. A more decisive break below the 105 handle would start to increasingly shift the focus to the area around the 103 level which was relatively congested back in 2016 and [..]

Technical Analysis – USDCAD facing strong selling interest; pullback on 9-month high of 1.3123

Posted on March 23, 2018 at 7:55 am GMT

USDCAD plummeted aggressively on Wednesday after the pullback to the 61.8% Fibonacci retracement level near 1.3130 of the downleg from 1.3800 to 1.2060. The price came under heavy selling pressure after hitting a 9-month high. However, during yesterday’s trading session it pared some losses and posted a green day. Currently, the price is developing slightly below the 50.0% Fibonacci level of 1.2930, while holding below the 20-day simple moving average (SMA). Short-term technical indicators are pointing to a continuation of the bearish bias. The [..]

Technical Analysis – EURTRY moves near all-time high; further upside movement is expected

Posted on March 22, 2018 at 1:48 pm GMT

EURTRY reached an all-time high near the 4.8700 handle on Tuesday as the price extended its bullish run after it jumped above the 4.7350 key level. The bullish picture in the medium-term has been holding since February 2017 and is further supported by the technical indicators. Short-term momentum indicators are also pointing to the bullish bias. The RSI indicator is sloping to the upside and is approaching the overbought zone while the MACD oscillator surpassed the trigger line but is moving with weak momentum. [..]

Technical Analysis – NZDUSD advances following the rebound on 0.7152; bullish correction on the way

Posted on March 22, 2018 at 10:08 am GMT

NZDUSD skyrocketed over the last couple of hours and jumped above the 0.7260 critical level which overlaps with the 38.2% Fibonacci retracement level of the downleg from 0.7435 to 0.7152, posting a one-week high. The rebound on the 0.7152 support barrier helped the price to create a strong bullish day surpassing the 20 and 40 simple moving averages (SMAs) in the 4-hour chart. Having a look at the momentum indicators, the RSI and the MACD seem to be in agreement with [..]

Forex News Preview – Brexit transition deal gives BoE go-ahead for May rate hike but UK data poses dilemma

Posted on March 21, 2018 at 11:44 am GMT

Bets for a Bank of England rate hike in May received a major boost this week after the United Kingdom and the European Union reached a deal on a 21-month transition period that would come into effect when Britain officially leaves the bloc at the end of March 2019. The positive development is likely to sway BoE policymakers in favour of signalling a rate increase in May when they convene on Wednesday and Thursday for a two-day monetary policy meeting. [..]

Technical Analysis – EURJPY still consolidating; 130.35 acts as strong support area

Posted on March 21, 2018 at 9:46 am GMT

EURJPY has been moving within a consolidation area since February 22 with upper boundary the 132.20 resistance level and lower boundary the 129.60 support level. It is worth mentioning that the price came under strong pressure following the bounce off the 131.70 barrier on Tuesday’s session and hit the 135.35 support level. Looking at momentum indicators, in the 4-hour chart, the Relative Strength Index (RSI) is lacking direction below the neutral threshold of 50, suggesting that the market could keep [..]

Technical Analysis – AUDUSD in strong sell-off; ascending trend line eyed as next level

Posted on March 21, 2018 at 7:34 am GMT

AUDUSD recorded relative strong bearish sessions in the previous week before the pull-back on the 0.7920 resistance level. The price plunged below the 0.7715 key level and posted a fresh three-month low of 0.7677. The bearish structure in the short-term remains intact, however, stochastics signal for a bullish correction. In the daily timeframe, the MACD indicator is well below the zero and trigger lines and is falling, while the stochastic oscillator is creating a bullish crossover within the %K and [..]

Technical Analysis – GBPUSD edges higher; creates 1-month high below 1.4100

Posted on March 20, 2018 at 7:44 am GMT

GBPUSD has advanced considerably during yesterday’s trading session, hitting a new one-month high of 1.4087. Over the last few days, the price climbed above the short-term descending trend line from the high on January 25, suggesting more upside bias. The technical picture also supports that the bullish move is likely to continue in the short-term. It is worth mentioning that the pair has been trading within a strong ascending movement since March 2017 and tested the diagonal line several times [..]

Technical Analysis – EURGBP still holding in bearish channel; ready to hit lower band near 0.8685

Posted on March 19, 2018 at 1:42 pm GMT

EURGBP is edging sharply lower over the last few hours, recording a five-week low near the 0.8745 price level. It is worth mentioning that the pair has been consolidating in a downward sloping channel since September 2017. The neutral to bearish picture in the medium term looks to last for a while longer after prices failed to break above the upper channel earlier this month. In the daily chart, the negative bias in the near term is supported by the deterioration in the [..]

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.

How can we help?

Live Chat Terms