forex

Technical Analysis – EURUSD bounces quickly up after hitting 3-year low

Posted on March 19, 2020 at 1:49 pm GMT

EURUSD had a flash downside correction below the downward-sloping channel today, stretching its ten-day old sell-off to a three-year low of 1.0725. The MACD continues to lose momentum below its trigger line, the RSI is making its way down below its 30 oversold level, while the stochastic oscillator is reversing south again, all signaling a bearish trading in the short-term. Also, the 20- and the 40-period simple moving averages (SMAs) are following the price action down. Should weakness extend, support could be initially detected within the 1.0775 – 1.0800 support area before the 1.0725 trough [..]

Technical Analysis – EURNZD finds wall at 10-year top; looks overbought

Posted on March 19, 2020 at 10:40 am GMT

EURNZD found some footing around the ten-year high of 1.9922 before edging lower near the 23.6% Fibonacci retracement level of the upward move from 1.6615 to 1.9922 at 1.9145. The red Tenkan-sen line, remains well above the blue Kijun-sen and the RSI is currently flirting with overbought levels, while the stochastic is turning lower into the positive area after the bearish cross within the %K and %D lines, which exited the overbought region. A pull back may meet immediate support around the 1.8990 barrier, while [..]

Technical Analysis – US dollar index near 17-year high as rally accelerates

Posted on March 19, 2020 at 8:43 am GMT

US dollar index futures (June delivery) exploded higher in recent weeks, as the global pandemic crisis has ignited a dollar liquidity shortage. The price is now trading at three-year highs, with the structure on the weekly chart consisting of higher highs well above the 50- and 200-week moving averages (MAs), which posted a ‘golden cross’ in mid-2019. Hence, the picture is positive, and a weekly close above the almost two-decade high of 103.80 could add more gasoline to the rally. [..]

Technical Analysis – GBPUSD posts heavy fall within a tumble mode; new low since 1985

Posted on March 19, 2020 at 7:53 am GMT

GBPUSD has been gradually tumbling over the last couple of weeks, dropping to levels not seen in several decades. The price is flirting with the fresh low last seen in 1985 that posted on Wednesday at 1.1450. The sharp selling interest was confirmed by the long-term momentum indicators that slipped in their negative territories. The RSI is hovering near the 30 level, while the MACD is falling beneath its trigger line in the weekly timeframe. The Ichimoku lines are dropping as well, following the price action. Should [..]

Technical Analysis – USDJPY recovers after touching US election low

Posted on March 18, 2020 at 2:19 pm GMT

USDJPY fell sharply in recent weeks to touch 101.20, a level last seen on November 9, 2016 – the day Donald Trump was elected US president. The pair found fresh buy orders near that zone and then staged a major recovery, holding above a short-term uptrend line. On the four-hour chart, the price structure now consists of higher highs and higher lows, so the very near-term outlook seems to have turned positive. A break back above 108.50 could confirm that. [..]

Technical Analysis – CADJPY falls to 2011 low, posts death cross

Posted on March 18, 2020 at 10:29 am GMT

CADJPY has sold off aggressively in the past few weeks, with the pair falling to 73.85 – a zone last seen in 2011 – before rebounding somewhat. The outlook therefore seems to have turned negative, something endorsed by the 200-day simple moving average (SMA) crossing below the 50-day one to form a ‘death cross’. That said, a break below 73.85 is needed to confirm the downtrend. Short-term oscillators paint a bearish picture too. The RSI looks ready to test its [..]

Technical Analysis – EURCHF loses steam marginally above 5-year low and below SMAs

Posted on March 18, 2020 at 10:14 am GMT

EURCHF has been declining over the last eleven months, driving the pair towards the almost five-year bottom of 1.0540 on March 12. The market is remaining well below the descending trend line and close to the 20- and 40-period simple moving averages (SMAs) in the daily timeframe. Technically, the RSI indicator is pointing down in the bearish zone and marginally above the oversold region, while the MACD is stretching its negative momentum below the trigger line, suggesting an extension of [..]

Technical Analysis – AUDUSD records a new 17-year low in oversold zone

Posted on March 18, 2020 at 7:11 am GMT

AUDUSD has been in a strong bearish rollercoaster over the last ten days, flirting with the 17-year low beneath the strong psychological mark of 0.6000. The pair has also increased distance below its negatively sloped moving average lines and the flattening Ichimoku cloud, indicating that the recent downtrend might hold for longer. Momentum signals are bearish as is the red Tenkan-sen line, which is below the blue Kijun-sen line, and looks to be heading south, while the RSI is still moving in the oversold territory over [..]

FTechnical Analysis – EURAUD rollercoaster continues to fresh 11-year peak; next level 1.86

Posted on March 17, 2020 at 1:01 pm GMT

EURAUD is still extending its bullish rollercoaster to a fresh eleven-year peak of 1.8415, posting its fifth consecutive green day. The moving average lines are following the price’s action and are pointing north. Additionally, the RSI indicator is hovering in the overbought territory with weaker momentum than before, while the stochastic is edging higher above the 80 level. On the upside, the price could attempt to overcome the eleven-year high and test the 1.8600 round level, which has been standing [..]

Technical Analysis – EURGBP unlocks 6-month high; indicators look overbought

Posted on March 16, 2020 at 2:09 pm GMT

EURGBP recorded a stunning rally over the last month towards a six-month peak of 0.9132. The Ichimoku lines and the moving averages are following this bullish action, with the 40-day simple moving average (SMA) and the 100-day SMA posting a golden cross. According to the Relative Strength Index (RSI), the market may extend its movement to overbought levels as the index is standing above 70 mark. In addition, the MACD oscillator is still moving north above its red trigger and zero [..]

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.