forex

Technical Analysis – EURUSD tumbles within descending channel; 23-month low in sight

Posted on May 20, 2019 at 6:33 am GMT

Since its deep fall towards a two-week low in early May, EURUSD slipped beneath the 20- and 40-simple moving averages (SMAs) in the daily timeframe, remaining in a descending channel of its drop from 1.1570. The technical picture supports that the 1.1260 resistance is likely to continue to hold in the short-term. Looking at momentum indicators, the MACD declined below its trigger line and zero line, suggesting that the market could keep losing momentum in the near term. The stochastic also supports [..]

Technical Analysis – GBPAUD remains in bearish correction despite latest pullback

Posted on May 17, 2019 at 12:10 pm GMT

GBPAUD is edging slightly higher after the pullback on the 23.6% Fibonacci retracement level of the upleg from 1.7220 to 1.8880 near 1.8485. The RSI is flattening around the neutral threshold of 50, while the stochastic oscillator is moving near the oversold territory. However, the 20- and 40-simple moving averages (SMAs) in the daily chart posted a bullish cross despite the latest bearish movement. On the upside, the price could touch once again the 35-month high of 1.8880, while a successful climb [..]

Technical Analysis – AUDJPY continues sell-off, recording 4-month lows

Posted on May 17, 2019 at 7:27 am GMT

Selling interest is continuing in the AUDJPY market, pushing the price towards a new four-month low of 75.37. The price is also holding beneath the red Tenkan-sen and the blue Kijun-sen lines, while the MACD is strengthening its bearish momentum below zero. The RSI is bearish as well, though under its 30 oversold mark. Another signal for more sell-off is the negative crossover within the 20- and 40-simple moving averages (SMAs) in the daily timeframe. Should negative pressure strengthen, support could come around the 74.50 barrier, identified [..]

Technical Analysis – USDCAD neutral in short-term, within symmetrical triangle

Posted on May 17, 2019 at 7:09 am GMT

USDCAD has been range-bound for another week within the 1.3520-1.3375 area, while candles keep closing above the lower line of the symmetrical triangle. The sideway move in the RSI and the flattening Ichimoku indicators (Tenkan-sen, Kijun-sen) signal that the pair may extend its neutral performance in the short term. On the upside, the price would have to finish a session comfortably above the upper line of the symmetrical triangle (1.3500) for the bullish pressures to heat up. If that is the case, the next key resistance [..]

Technical Analysis – EURJPY gains expected to reach downtrend line

Posted on May 16, 2019 at 1:25 pm GMT

EURJPY reversed higher after it tumbled towards a fresh four-month low of 122.07 this week. The technical picture supports that the slightly bullish correction is likely to continue in the short-term. The MACD is stretching to the upside above its trigger line and the stochastic oscillator is approaching the overbought zone in the 4-hour chart. Another move to the upside could find resistance at the 40-simple moving average (SMA) currently at 123.00 and the 123.10 resistance. Marginally higher, the 23.6% Fibonacci retracement level of [..]

Technical Analysis – NZDUSD eyes descending line following touch on 1-week low

Posted on May 16, 2019 at 9:09 am GMT

NZDUSD declined earlier on Thursday, hitting a one-week low of 0.6544 but the price recovered most of its lost ground immediately. What remains to be seen is if the bulls have enough fuel to exit the steep descending trend line drawn from the April peak. The stochastic and the MACD are in favor of this scenario, suggesting more upside pressure as both are turning higher. The downtrend line around 0.6580 will attract full attention on the way up. Should the price break the line to the upside, the rally [..]

Technical Analysis – USDJPY to consolidate losses in short term

Posted on May 16, 2019 at 7:19 am GMT

USDJPY paused its sell-off around the 109 round level earlier this week as the RSI signaled that bearish pressures were exhausted. The indicator is currently moving sideways along its 30 oversold mark, hinting that a consolidation phase may follow before the price potentially rebounds. Sellers could wait for the price to rise well above the 109.70-110 area and hence jump back above the previous low of the January uptrend to re-enter the market. Slightly higher, the 61.8% Fibonacci of 110.74 of the downleg from 114.54 to 104.64 could [..]

Technical Analysis – EURUSD returns higher but fails to jump above 40-SMA

Posted on May 13, 2019 at 6:46 am GMT

EURUSD has reversed back up again after finding support at the 23-month low of 1.1110, achieved on April 26. The price is hovering within the 20- and 40-simple moving averages (SMAs) in the daily timeframe, remaining within the four-month descending channel. Momentum indicators are pointing to positive bias in the short term with the MACD just above the trigger line in the negative territory and the stochastic oscillator approaching the overbought zone. Further gains should see the May 1 high [..]

Technical Analysis – GBPAUD slips, could struggle until bullish cross confirmed

Posted on May 10, 2019 at 8:41 am GMT

GBPAUD has declined considerably since it reached an almost three-year high of 1.8880 on Monday, sending the price until the 1.8530 support. The RSI is turning slightly lower approaching the 50 level, while the stochastic oscillator seems to be strongly bearish, as it is heading towards the oversold territory. However, the 20- and 40-simple moving averages (SMAs) in the daily chart are ready to post a bullish cross despite the latest bearish movement. If the price continues to slip further, a [..]

Technical Analysis – USDCAD rebounds on 20-day SMA but indicators look weak

Posted on May 10, 2019 at 6:31 am GMT

USDCAD rebounded on the 20-day simple moving average (SMA) several times in the preceding sessions, but it still remains below the four-month high of 1.3520. The risk is currently viewed as bullish-to-neutral as on the one hand the RSI seems to be changing direction southward to meet its 50 neutral mark, but the red Tenkan-sen is on a sideways move above the blue Kijun-sen and the MACD is trying to strengthen above its trigger line. The bulls could set immediate target around the four-month high of 1.3520, while a break higher would open [..]

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