forex

Technical Analysis – USDCAD trend signals tilting to the downside

Posted on December 13, 2019 at 8:54 am GMT

USDCAD stretched this week’s decline until the 61.8% Fibonacci of 1.3150 of the upleg from 1.3041 to 1.3326 despite the declining risk-off sentiment. With the RSI testing its 30 oversold mark, the odds for an upside correction in the short-term are rising. However, with the 20-period simple moving average (SMA) in the four-hour chart crossing below the longer-term 200-period SMA, a trend improvement may come later than sooner, especially as the price keeps erasing its uptrend off 1.3041. Note that [..]

Technical Analysis – NZDUSD maintains positive outlook despite ease in rally

Posted on December 12, 2019 at 9:59 am GMT

NZDUSD has pulled lower from the fresh four-month high of 0.6602 following a bounce off the 50-period simple moving average (SMA), which revived the bigger positive picture. Further backing the ascent are the upward sloping SMAs and the supportive trendline. The short-term oscillators, although reflect a pause in positive momentum, continue to support the upside view. The MACD remains in the positive zone and above its red trigger line, while the RSI has turned down below the 70 level. If [..]

Technical Analysis – USDJPY trapped under resistance trendline; neutral in short-term

Posted on December 12, 2019 at 8:20 am GMT

USDJPY could not reach the 110.00 level last week as the resistance trendline drawn from the October’s 2018 peaks blocked the bulls once again and pressed the price back down to the 50% Fibonacci of 108.40 of the upleg from 112.39 to 104.44. Technically, the pair may lack momentum in the short-term as long as the RSI and the MACD move around their neutral levels and the Ichimoku indicators ( Kijun-sen and Tenkan-sen) keep flattening. Nevertheless, a closing price below the [..]

echnical Analysis – USDJPY trapped under resistance trendline; neutral in short-term

Posted on December 12, 2019 at 8:19 am GMT

USDJPY could not reach the 110.00 level last week as the resistance trendline drawn from the October’s peaks blocked the bulls once again and pressed the price back down to the 50% Fibonacci of 108.40 of the upleg from 112.39 to 104.44. Technically, the pair may lack momentum in the short-term as long as the RSI and the MACD move around their neutral levels and the Ichimoku indicators ( Kijun-sen and Tenkan-sen) keep flattening. Nevertheless, a closing price below the 50% Fibonacci [..]

Technical Analysis – USDCHF fails to close below crucial support and turns up

Posted on December 11, 2019 at 2:54 pm GMT

USDCHF looks to have bottomed the pullback off the 1.0022 high near the familiar 50% Fibonacci retracement of the 0.9658-1.0026 bullish wave as the RSI and the Stochastics are turning up after hitting oversold levels. Additional gains could potentially retest the 40-period exponential moving average (EMA) that curbed upside movements last week. Breaking higher and above the 38.2% Fibonacci of 0.9886, recent peaks around 0.9908 could take control ahead of the 23.6% Fibonacci of 0.9940. Closing decisively below the 50% Fibonacci of 0.9843, [..]

Technical Analysis – USDSEK completes head and shoulders pattern; sellers take control

Posted on December 11, 2019 at 2:38 pm GMT

USDSEK may continue to lose ground after diving below the neckline of the head and shoulders pattern and the fresh 9.4640 swing low. Further boosting the negative picture is the bearish crossover of the 100-day simple moving average (SMA) by the downward sloping 50-day one. The short-term oscillators are also reflecting increasing negative momentum. The MACD is declining below its red trigger line in the negative zone, while the RSI, in the bearish region, is falling and has reclaimed the [..]

Technical Analysis – EURJPY maintains a neutral stance despite slight appreciation in price

Posted on December 11, 2019 at 9:07 am GMT

EURJPY is trading around the 120.42 level, which is the 23.6% Fibonacci retracement of the up leg from 117.06 to 121.46 and where the 200-period simple moving average (SMA) is presently located. Although the price is above all the SMAs, it is displaying an uncertain picture, with the stall in the market also reflected in the flattened SMAs and the conflicting signals in the short-term oscillators. The technical indicators are exhibiting contradictory signals in directional momentum. The MACD is above [..]

Technical Analysis – CADJPY consolidates after correction off 6-month high

Posted on December 10, 2019 at 3:23 pm GMT

CADJPY seems to be trading around the 82.07 level, in a vicinity where the 20-, 50- and 200-day simple moving averages (SMAs) have converged around. The pair looks unsure and may continue a sideways market, something also backed by the flatness and convergence of the SMAs. Further aiding this view, is the dry up in directional momentum reflected from the short-term oscillators. The MACD and the RSI are only just in the bearish region, barely below their neutral marks. If [..]

Technical Analysis – EURUSD rally above 1.1100 likely to resume bullish appetite

Posted on December 10, 2019 at 8:30 am GMT

EURUSD slipped back into the 1.1000 region after the 23.6% Fibonacci of 1.1108 of the upleg from 1.0878 to 1.1178 ceased last week’s rally that surpassed the neckline of the double top bearish formation in the four-hour chart. The 50-period simple moving average (SMA) is keeping sellers under control this week, though the momentum indicators have yet to enter the bullish territory to signal improvement in the market. With the RSI hovering around its 50 neutral mark and the MACD [..]

Technical Analysis – GBPUSD runs to 8-month high; overbought near key resistance

Posted on December 9, 2019 at 8:41 am GMT

GBPUSD closed significantly above the tentative descending trendline stretched from the 2018 high of 1.4375 that looked to be part of a bullish pennant formation. The price inched up to an eight-month high of 1.3179 on Monday but remained close to the key 1.3175 resistance mark, with the RSI and the Stochastics hinting that buying pressure is overloaded and downside corrections are likely in the short-term. Still, overbought signals would only be confirmed if the indicators show a clear downside reversal. In case sellers [..]

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