forex

Technical Analysis – CADCHF corrects upwards as engulfing candle stops losses

Posted on August 9, 2019 at 12:42 pm GMT

CADCHF buyers halted the pair’s move down just before 0.7250, which is the 138.2% Fibo extension of the up leg from 0.7350 to 0.7610. The subsequent recovery moved the price above the 0.7350 resistance, where the market has now adopted a sideways approach in an area of around 20 pips. The momentum indicators show that the very short-term corrective move up may be losing steam. The MACD has started to flatten above its red trigger line, whereas the RSI could [..]

Technical Analysis – GBPJPY in descending channel; moves sideways at 33-month low

Posted on August 9, 2019 at 9:08 am GMT

GBPJPY takes a breather after falling from a swing high of 135.65 on July 25, moving sideways around a thirty-three-month low of 128.75. It’s noteworthy that while the latest move down printed a lower low, the RSI points to positive divergence with the price action, suggesting that a corrective upside wave may be next. The relatively flat momentum indicators support the very short-term sideways move. The MACD has flattened above its trigger line, whereas the RSI is hovering between the [..]

Technical Analysis – USDCAD bulls get rejected from 200-day SMA; bias bullish-to-neutral

Posted on August 9, 2019 at 7:28 am GMT

USDCAD got rejected by the 200-day simple moving average (SMA) and the 1.3300 level after an attempt to cross above the area and the Ichimoku cloud. The pair immediately gave up most of its gains made this week on Thursday, with the technical indicators suggesting a bullish-to-neutral bias for the short-term. The RSI is slowing towards its 50 neutral mark, the MACD is losing steam above its red signal line, while the red Tenkan-sen is flattening above the blue Kijun-sen. [..]

Technical Analysis – NZDUSD corrects higher after plunging to 3½-year low

Posted on August 8, 2019 at 2:59 pm GMT

NZDUSD fell aggressively and logged 180 pips early on August 7. But the latest trickle downwards lasted for nineteen days before the correction by buyers. They pushed the price up and into a sideways structure, slightly below 0.6473, which is the 23.6% Fibo retracement level of the down leg, from a three-and-a-half-month high of 0.6789 to a low of 0.6376. It is worth mentioning that the Tenkan-sen average has restarted moving down, agreeing with the 100-day simple moving average’s (SMA) [..]

Technical Analysis – GBPAUD fails to exit descending channel and drifts lower

Posted on August 8, 2019 at 2:03 pm GMT

GBPAUD attempted forcefully to exit the descending channel and breach at once the 1.8200 level and the lower bound of the Ichimoku cloud but its efforts proved fruitless, with the price slipping back to the 1.78 hurdle on Thursday. The RSI has pierced its 50-neutral mark to the downside, endorsing the current negative momentum in the price. Yet the weakness may not persist for long if the red Tenkan-sen manages to move above the blue Kijun sen. Hence the short-term risk is currently [..]

Technical Analysis – EURGBP could soften in short-term

Posted on August 8, 2019 at 11:37 am GMT

EURGBP flied even higher this week to top its 2-month old rally at 0.9248, the highest mark reached in almost two years. The spotlight is now on the 0.9300 round-level, where any violation may drive the price towards the 0.9400 mark. However, with the RSI losing steam below its 70 overbought mark, the bullish pressures may rather weaken, turning the short-term picture into a neutral one. It’s also worth noting that the pair is trending in overbought waters in the weekly chart [..]

Technical Analysis – USDJPY bears blocked around 105.50

Posted on August 8, 2019 at 7:16 am GMT

USDJPY put brakes on the sell-off near the key 105.50 area twice this week and turned to consolidation. Trend signals remain bearish as the market action continues to take place well below simple moving averages (SMA) and the Ichimoku cloud, whilst the momentum indicators suggest that the next move in the price could be bearish-to-neutral. The MACD keeps strengthening downwards and under its red signal line, the RSI points towards its 30 oversold mark, whereas the Stochastics are sloping upwards after [..]

British GDP data unlikely to rescue the Brexit-battered pound – Forex News Preview

Posted on August 7, 2019 at 1:52 pm GMT

The first estimate of UK GDP for Q2 is due at 08:30 GMT on Friday, with forecasts pointing to a stagnation in growth. If confirmed, that could raise the pressure on the BoE to abandon its tightening plans soon. As for the pound, the outlook remains negative as long as PM Johnson plays ‘chicken’ with Brussels, threatening a no-deal Brexit to extract concessions. For the tide to turn, markets may need signals for a General Election, which won’t come for [..]

China’s exporters could have a painful summer as trade game turns more defensive – Forex News Preview

Posted on August 7, 2019 at 12:54 pm GMT

China played its exchange rate weapon this week to prove that it has the means to fight a tougher trade war with the US, but the Chinese government, like its major counterparts, also needs a solid economic floor to survive a bigger turmoil. Hence, trade and inflation data out of the country early on Thursday and Friday could be treated as clues on whether the world’s second biggest economy should proceed with more stimulus to enhance its financial dynamics. China’s exports to keep falling, [..]

Technical Analysis – EURJPY drops to 2-year low; fills the gap from April 2017

Posted on August 7, 2019 at 9:04 am GMT

EURJPY fell aggressively, after breaking below the 50-day simple moving average (SMA) and the 120.77 then support, further past the 120.04 inside swing low to a 2-year low of 117.66 in the last week. The move filled the gap from back in April of 2017. After a pullback, the price lost its steam and now sits on the middle Bollinger band. The MACD crossed above its red trigger line in the negative region but has started to flatten, whereas the [..]

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