forex

European PMIs may be scary, but euro has bigger fish to fry – Forex News Preview

Posted on April 21, 2020 at 1:26 pm GMT

The Eurozone’s preliminary PMIs for April will be released on Thursday at 08:00 GMT, and the numbers could be scary. However, investors don’t pay much attention to economic data nowadays, so the euro might be driven by risk sentiment and politics instead. The meeting of EU leaders – also on Thursday – is an asymmetric upside risk, but the currency’s broader outlook still seems negative. Too little, too late The European Union’s weak institutional framework has come back to bite [..]

Technical Analysis – USDCAD pops higher, but still in bear mode

Posted on April 20, 2020 at 12:09 pm GMT

USDCAD recovered somewhat in recent sessions, but the pair is still printing lower highs on the four-hour chart, which keeps the near-term outlook cautiously negative. For the short-term picture to improve to neutral, the bulls would need to push the market above 1.4350. Short term oscillators suggest that the latest recovery could continue for now. The RSI has crossed above 50 and is pointing up, while the MACD – already positive – is now testing its trigger line, an upside [..]

Technical Analysis – AUDJPY attempts to turn neutral as bulls keep control

Posted on April 9, 2020 at 12:09 pm GMT

AUDJPY posted solid gains in recent sessions, continuing to recover after crashing in late February. The pair is now testing the 67.70 zone and crucially, a close above this region could turn the outlook back to neutral, from cautiously negative now. Something similar is being signaled by the 50-day simple moving average (SMA), which has started to flatten out. Short term oscillators suggest that the recovery might continue for now. The RSI has popped above its 50 line and is [..]

Technical Analysis – AUDJPY bounces off 11-year low, but recovery fizzles

Posted on March 27, 2020 at 1:06 pm GMT

AUDJPY fell aggressively in recent weeks to touch an 11-year low of 59.85, where the pair found fresh buy orders and subsequently rebounded. That said, the price structure on the daily chart still points to a broader downtrend, something reinforced by the ‘death cross’ of the 50-day simple moving average (SMA) below the 200-day one. Moreover, the inability of the bulls to pierce above 67.70 suggests that upside momentum is fading. Short term oscillators paint a mixed picture. Whereas the [..]

Technical Analysis – AUDUSD rebounds on 17½-year low; negative momentum fades

Posted on March 26, 2020 at 7:26 am GMT

AUDUSD is unable to decisively overrun above the 38.2% Fibonacci retracement level of the bearish wave from 0.7030 to the 17½-year low of 0.5506 to post some significant gains, as positive momentum evaporates. The pair today has declined to the nearby red Tenkan-sen line and the 23.6% Fibonacci of 0.5865, with backing from the technical indicators and the easing simple moving average lines (SMAs). Most of the short-term oscillators suggest an increase in negative momentum for now. The slightly falling [..]

Technical Analysis – EURUSD recovery halted by downtrend line

Posted on March 25, 2020 at 11:47 am GMT

EURUSD recovered in recent sessions following an aggressive sell-off, but the bulls seem to be having trouble overcoming a downtrend line drawn from the March peak. The near-term outlook therefore remains negative for the time being, though a break above the downtrend line and more importantly above the 1.0890 zone, could turn it back to neutral. Short term momentum oscillators rest near their neutral levels, providing no clear directional signals. The RSI is currently testing its 50 zone while the [..]

Technical Analysis – EURGBP retreats from 11-year high, tests crucial support area

Posted on March 25, 2020 at 7:06 am GMT

EURGBP staged a powerful rally over the past month to touch an 11-year high near 0.9500, before retreating somewhat. The price structure still consists of higher highs and higher lows above an upside support line, as well as above the 50- and 200-day simple moving averages (SMAs), implying that the broader outlook remains positive. For that to change, the bears would need to pierce below the upside line and also drive the pair below the 0.9000 handle. Short term [..]

Technical Analysis – EURCHF rebounds on 5-year low; strongly negative in long-term

Posted on March 24, 2020 at 1:38 pm GMT

EURCHF is trading slightly above the five-year low of 1.0515, flirting with the 20-day simple moving average (SMA) and the immediate resistance at 1.0615, which coincides with the 40-day SMA. The market is remaining well below the descending trend line, creating a strong selling trend which began eleven months ago. Technically, the RSI indicator is pointing up in the bearish zone, while the MACD is losing some momentum, surpassing the trigger line in the negative area. Downwards, the bears could face immediate support from [..]

Technical Analysis – USDCAD flirts with 20-SMA, signaling some losses in near term

Posted on March 24, 2020 at 7:54 am GMT

USDCAD is on course to slip beneath the short-term 20-period simple moving average (SMA) creating a neutral mode after the sell-off from the more than four-year high of 1.4670. According to the momentum indicators, the stochastic oscillator is diving towards the oversold zone, while the RSI is turning lower in the positive area. Immediate support is being provided by the 23.6% Fibonacci retracement level of the up leg from 1.3200 to 1.4670, around 1.4320, which stands near the 1.4330 support [..]

Technical Analysis – AUSUSD slips marginally below 20-period SMA and 23.6% Fibonacci

Posted on March 23, 2020 at 10:28 am GMT

AUDUSD has been underperforming in the past two days, breaking back below the 23.6% Fibonacci retracement level of the down leg from 0.6685 to 0.5506 at 0.5783. When looking at the bigger picture, the pair has a clear downside trend and has been moving below the short-term simple moving averages (SMAs). Considering the momentum indicators, the RSI is lacking direction slightly below its neutral threshold of 50, suggesting that the market could keep consolidating in the near term. The MACD [..]

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