forex

Technical Analysis – AUDNZD bullish in third week of rise

Posted on August 22, 2019 at 10:07 am GMT

AUDNZD is ready to complete its third week of gains, having strongly rebounded from an eight-month low of 1.0261 early this month and breached its simple moving averages (SMA). Encouragingly, the pair also managed to close on top of the Ichimoku cloud on Wednesday, while in momentum indicators, the rising MACD and RSI are embracing a positive bias for the short-term. The latter, however, is nearing its 70 overbought level, signalling that room for further improvement may be limited. The 78.6% Fibonacci of 1.0629 of the [..]

Technical Analysis – NZDUSD revisits 42-month low; buyers and sellers disagree

Posted on August 22, 2019 at 9:51 am GMT

NZDUSD continued the trickle downwards to retest the forty-two month low of 0.6376, after failing to overcome the past inside swing resistance of 0.6487 from June 14. The bulls came on board and pushed the pair back above the 0.6376 level, something also reflected in the RSI, which shows negative momentum decreasing. Despite the RSI’s view, the MACD has declined below its red trigger line suggesting the negative outlook could return. Furthermore, the 50-, 100- and 200-period simple moving averages [..]

Will German fiscal stimulus be too little, too late? – Special Report

Posted on August 22, 2019 at 9:30 am GMT

The euro area is on the brink of yet another crisis, with Germany likely to enter a technical recession soon, as the export-heavy economy feels the burn of the US-China trade war and of Brexit worries. Although the ECB is preparing another dose of easing, monetary policy is already exhausted, and fiscal policy needs to step up. Sadly, any German stimulus is unlikely to be large and may take long to arrive, so any sustained rebound in the euro seems [..]

Technical Analysis – USDJPY bulls likely waiting above 107.00; short-term bias looks neutral

Posted on August 22, 2019 at 7:13 am GMT

USDJPY has been in a quiet and narrow trade this week, moving sideways within the 106.00 area but below its downward-sloping simple moving averages (SMA) and the Ichimoku cloud – a negative trend signal. In momentum indicators, the red Tenkan-sen continues to flatten below the blue Kijun-sen, while the RSI has also somewhat stabilized after strongly rebounding from the oversold territory, both suggesting a neutral-to-bearish bias for the short-term. The MACD, however, keeps improving in the negative area, increasing hopes [..]

Technical Analysis – GBPNOK still neutral in medium-term, despite recovery

Posted on August 21, 2019 at 3:26 pm GMT

GBPNOK’s bulls aggressively came on board, after the price fell to a new multi month low of 10.54 on July 30. They pushed the price above previous lows and into the Ichimoku cloud, before losing steam just below the 100-day simple moving average (SMA). The momentum indicators although in the positive territory, still concur with the 50- and 100-day SMAs bearish picture, with the MACD decreasing above its red trigger line and the RSI nearing the 50-level. If the bears [..]

Technical Analysis – AUDUSD stuck in a sideways channel; bullish signals weak

Posted on August 21, 2019 at 1:36 pm GMT

AUDUSD continues to trade softly within a sideways channel for the third consecutive week with an upper boundary at 0.6820 and a lower boundary at 0.6745. The MACD in the four-hour chart has gained some strength above its red signal line, endorsing the current upside movement in the price, though the indicator is still close to zero, while the red Tenkan-sen remains flat around the blue Kijun-sen, both giving little hopes for a meaningful rally. The bulls need a decisive close [..]

Technical Analysis – USDNOK logs 17-year high; corrects lower

Posted on August 21, 2019 at 12:49 pm GMT

USDNOK rallied up resulting in a breach of the previous high of 8.9906 from January 2016, generating a fresh high at 9.0413. Then the bears came on board and corrected the pair lower past 8.9906 and currently, the price has found some support at the flat Tenkan-sen average. Heading north are the 50-, 100- and 200-day simple moving averages (SMAs) reflecting a bullish bias. Although the sentiment is bullish, the momentum indicators which are in positive territory, paint a picture [..]

EU flash PMI data among key releases for battered euro this week – Forex News Preview

Posted on August 21, 2019 at 11:29 am GMT

It might be another troublesome week for the euro as initial Eurozone PMI readings for the month of August could enhance the case for a heavier stimulus package by the European Central Bank. The reaction in the euro however will depend on the level of monetary easing investors have already priced in, with the Fed’s Jackson Hole and the G7 meetings affecting traders’ sentiment as well. On Thursday at 0730 GMT the IHS Markit survey is likely to report further [..]

Technical Analysis – EURJPY plots 28-month low; continues sideways

Posted on August 21, 2019 at 8:14 am GMT

EURJPY plotted a twenty-eight-month low of 117.51 and then adopted a sideways demeanor over the last week. The pair was unable to push beneath, as momentum dried up, something indicated by the candles as well as the squeeze which formed in the Bollinger bands. The medium-term trend remains negative, also reflected by the 50- and 100-period simple moving averages (SMAs) on the four-hour chart which are sloping downwards. For now, though, the momentum indicators reflect a neutral picture with the [..]

Technical Analysis – EURGBP to consolidate losses in short-term; bullish in medium-term

Posted on August 21, 2019 at 6:59 am GMT

EURGBP registered sharp losses for the first time after 14 weeks following the peak to an almost decade high of 0.9323. The market switched to consolidation this week, moving sideways around the 0.9100 support area, with the flattening RSI and the falling MACD painting an overall neutral-to-bearish picture for the short-term. Should the downside correction stretch below 0.9100, the area between 0.9060 and the 50-day simple moving average could act as immediate support before the focus turns to the 0.9000 round-level where 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.