Technical Analysis

FX Daily Outlook| 23-09-16

Posted on September 23, 2016 at 8:55 am GMT

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Technical Analysis – EURGBP consolidation eyes upside to 0.87

Posted on September 23, 2016 at 7:06 am GMT

The euro / pound exchange rate has recently rallied as sterling has been weak due to renewed concerns about the impact of Brexit. The pair made a local high of 0.8630 on Tuesday, leading to overbought conditions (RSI climbed above 70) and a subsequent correction and consolidation. The overall trend has remained bullish as price action is comfortably above the 50-period moving average. The pair traded as low as 0.8560 and this is a very short-term support which has been [..]

Technical Analysis – US 30 index drifts below 50-DMA as it consolidates after record high

Posted on September 22, 2016 at 11:14 am GMT

The US 30 stock index touched an all-time high of 18667.50 on August 15 but has been steadily drifting lower since, falling below the 50-day moving average. The recent consolidation has weakened the positive outlook for the index as it has headed back into the Ichimoku cloud. The short- to medium-term picture in the daily chart is therefore looking more neutral, though the underlying longer-term trend remains bullish as indicated by the upward trending 200-day moving average. The index is [..]

FX Daily Outlook| 22-09-16

Posted on September 22, 2016 at 8:21 am GMT

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Technical Analysis – NZDUSD maintains bullish trend, supported by 50-day moving average

Posted on September 22, 2016 at 7:39 am GMT

NZDUSD maintains the underlying bullish trend that started from the January low of 0.6346 to the September high of 0.7484. The market reached overbought levels at this peak as is indicated by RSI which rose to 70. Upside momentum in the market clearly faded and prices dropped but the reversal failed to gain traction and stalled just above the 50-day moving average, which acted as support. Immediate support lies at the key 0.7300 level. Below this the 50-day moving average [..]

Technical Analysis – USDJPY remains in bearish channel

Posted on September 21, 2016 at 2:13 pm GMT

Selling pressure on the USDJPY increased after the pair broke below important support at 101.40. This was quite a big move that changed momentum and pushed RSI back below 50 as prices fell from the day’s high of 102.77 to a low of 100.59 within 8 hours. Prior to this big move down the pair was in a range between 101.40 and 103.00 for the past two weeks. If the decline is sustained, then there is scope to target the [..]

Technical Analysis – GBPJPY falling towards critical 130 support level

Posted on September 21, 2016 at 2:12 pm GMT

GBPJPY broke below the important support zone from last Friday to extend its decline from around 135.00 to 130.55 by Wednesday. Immediate resistance lies at today’s high of 133.24 and support would be at the psychological 130.00 level. The 4-hour chart is looking very bearish, with prices falling since earlier this month. RSI is in bearish territory below 50. But it is at oversold levels near 30 so this suggests some consolidation in the near term. On the daily chart, [..]

Technical Analysis – EURJPY capped below 50-day moving average, maintains bearish market structure

Posted on September 21, 2016 at 7:38 am GMT

EURJPY briefly jumped higher early on Wednesday but the rally stopped just below the 50-day moving average, which is acting as a strong resistance level around 114.55. Immediate support lies at 112.35, which is the August 8 low. EURJPY is expected to remain within a range of 112.35 and 116.00 in the short term. The flattening 50-day moving average is an indication that the market is likely consolidating in this area. RSI remains below 50 in bearish territory and suggests [..]

Technical Analysis – Commodities summer consolidation extends into September

Posted on September 20, 2016 at 12:39 pm GMT

Despite some large daily moves, commodities have largely stuck to a range during most of the summer as the big rally of the first half of the year has stalled. Among the major commodities, oil has been unable to surpass its June peak, while gold remains one of the most bullish even though it’s been in steady retreat since its July peak. Oil stuck in bearish mode WTI oil futures have been making lower highs since the January-June uptrend was [..]