forex

Technical Analysis – EURJPY trapped between the 50- and 200-SMA; Bollinger bands strengthen the barriers

Posted on July 31, 2019 at 8:36 am GMT

EURJPY is resting below the 100-day simple moving average (SMA) at 121.36 following the last week’s rally. This is slightly above the 121.30 level, which is the 38.2% Fibo of the down leg from the 123.35 high to a recently produced seven-month low of 120.04. The pair then found support again between 120.80, which is the 23.6% Fibo and 120.77, the five-month low of June 3. Price has moved sideways among the narrowing Bollinger bands and between the flat 50- [..]

Technical Analysis – AUDUSD bounces on key support level; MACD still bearish

Posted on July 31, 2019 at 7:05 am GMT

AUDUSD bears got exhausted near the key 0.6864 support level early on Wednesday, with the fast-Stochastics pointing to a price reversal as the green %K line has already crossed above the red %D line in the oversold territory and seem to be turning higher. The fact that the price has been repeatedly touching the lower Bollinger band in the past few sessions is also an indication that upside corrections may soon take place. The MACD, however, has yet to show any sign of improvement, reducing [..]

Technical Analysis – USDTRY revisits the 200-day SMA after three-week gradual move lower

Posted on July 30, 2019 at 3:07 pm GMT

The USDTRY recorded multiple red days after a move off the 5.7350 resistance, which was the 23.6% Fibonacci retracement of the down leg from a seven-and-a-half-month high of 6.2432 to a low of 5.5782. The selling interest brought the price to sit on the 200-day simple moving average (SMA) slightly past the three-month low of 5.5782 formed on July 4. The Tenkan-sen and Kinjun-sen are pointing down, agreeing with the negative directional momentum suggested from the MACD and the RSI, [..]

Technical Analysis – GBPAUD produces a failed break of the 6-month low, buyers take back losses

Posted on July 30, 2019 at 1:03 pm GMT

The GBPAUD pair in the last weeks bounced up from the 1.7610 support area above the 1.7870 resistance, which is also the 23.6% Fibo of the descent from the almost three year high of 1.8880 to the low of 1.7630. Price tried to sustain an aggressive move down passed the recent six-month low of 1.7630 and the near low of 1.7610 from January 11. Despite strong buying interest which returned the price above the recent low of 1.7630, it is [..]

ECB monetary easing warranted, flash GDP growth and inflation eyed next – Forex News Preview

Posted on July 30, 2019 at 12:32 pm GMT

The Flash Harmonized Consumer Price Index (HCPI) and initial GDP growth estimates will be on the watchlist early on Wednesday. Following a dovish policy meeting by the European Central Bank last week, the data could assure markets that further monetary easing is the right choice for the months coming ahead. What markets don’t know yet though is the size and the duration of the upcoming stimulus package, with investors and hence the euro eagerly waiting this week’s data to give [..]

Technical Analysis – GBPUSD heads to post-Brexit referendum lows

Posted on July 30, 2019 at 7:17 am GMT

The heavy sell-off in GBPUSD stretched into Tuesday’s session as fears over a no-deal Brexit mounted, with the pair diving below 1.22 and towards its post-Brexit referendum troughs. The RSI is slipping below 30, the Stochastics are heading towards the 20 level, while the market action is currently taking place under the lower Bollinger band, all flagging that conditions are oversold, and an upside reversal could be around the corner. Yet any recovery could prove short-lived if the MACD continues [..]

Technical Analysis – USDCHF stopped at upper Bollinger band; unable to break above a 3-week high

Posted on July 29, 2019 at 1:05 pm GMT

USDCHF dropped from a twenty-eight-month high of 1.0235 to a five-and-a-half-month low of 96.93 over a three-month period. Buyers failed to push above the previous swing peak of 0.9950, and the price is currently hovering near the upper Bollinger band. The 14-day and 20-day simple moving averages (SMAs) show no clear direction, whereas the MACD and RSI are giving mixed signals. On the one hand MACD is trying to exit the negative zone, but the RSI has turned down. The [..]

Technical Analysis – EURGBP flies above Ichimoku cloud; RSI overbought

Posted on July 29, 2019 at 9:51 am GMT

An impressive rally followed the rebound on the 23.6% Fibonacci of the upleg from 0.8489 to 0.9050, with EURGBP spiking above its simple moving averages (SMA) and the Ichimoku cloud in the four-hour chart. In the meantime, the RSI seems to be slowing down in the overbought territory, flagging that the rally is exaggerated, and therefore downside corrections could soon take place. Nevertheless, as long as the MACD keeps gaining ground in the positive terittory and well above its red signal line, any [..]

Technical Analysis – EURUSD looks for a rebound near lower Bollinger band

Posted on July 29, 2019 at 7:33 am GMT

EURUSD is struggling to gain buying interest after the deep fall towards the key 1.1100 support mark – the lowest in more than two years. The negative momentum in the MACD, which is far below the zero and trigger lines, suggests that the bearish sentiment is likely to stay in the short-term. Yet in the very short-term, upside corrections cannot be ruled out as the fast stochastics have already posted a bullish cross in oversold zone, while the price itself [..]

Technical Analysis – GBPJPY bulls test 20-day SMA; trend reversal still likely

Posted on July 26, 2019 at 9:01 am GMT

After three weeks of consecutive losses, GBPJPY is set to close in the green, though with minimal gains. The 20-day simple moving average (SMA) remained a key resistance area, while the RSI and the MACD continue to keep the odds high for downside corrections in the short-term as long as they fluctuate in bearish area. Yet, both indicators have been correcting north and towards their neutral levels over the past two months at a time when the price was printing [..]

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