Technical Analysis

Technical Analysis – EURJPY looking overbought above 50-DMA

Posted on November 16, 2016 at 12:27 pm GMT

EURJPY has made a convincing break above the 50-day moving average following the post US election sell-off of the yen. The safe-haven sell-off has helped EURJPY climb to near 4-month highs but momentum indicators suggest the rally may already be running out of steam. The stochastics have crossed into overbought territory and while the %D and %K lines remain positively aligned and are still rising, the upward momentum is likely to ease in the near term. In the meantime, there [..]

FX Daily Outlook| 16-11-16

Posted on November 16, 2016 at 10:41 am GMT

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Technical Analysis – Bearish pressure on WTI oil eases as RSI moves off oversold levels

Posted on November 16, 2016 at 9:03 am GMT

Bearish pressure on WTI oil futures prices has eased as RSI has moved out of oversold territory, off 30 and is heading towards 50. Prices have risen above the 200-day moving average which increases the potential for further upside moves. However, the market has fallen below the rising trend line (that started from January) and this will now act as immediate resistance to the upside. There is a cluster of resistance levels starting at around $46.70 (trendline) and at $47.30 [..]

FX Daily Outlook| 15-11-16

Posted on November 15, 2016 at 9:29 am GMT

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Technical Analysis – USDCAD bullish but pauses rally at 5-month high

Posted on November 15, 2016 at 8:40 am GMT

USDCAD paused a rally that took the pair to a fresh 9-month high of $1.3587 on Monday. This is an important level and is acting as resistance since it is defined by the 50% Fibonacci retracement of the January-May decline from 1.4689 to 1.2460. To the downside, it is important for support at 1.3500 to hold, otherwise a break below this would lead to a fall towards 1.3308 and 1.3200 and would shift the current short-term bullish bias. The technical [..]

Technical Analysis – USDJPY bullish after break above 107 level and 200-day moving average

Posted on November 14, 2016 at 9:03 am GMT

USDJPY extended higher to hit a 5-month peak of 107.95 in early Monday trading. The break above the key psychological level of 107.00 and above the 200-day moving average today strengthens the bullish bias. The next target to the upside is at 108.75. This level is defined as the 78.6% Fibonacci retracement level of the May to June fall from 111.44 to 98.96. Above this, the key 111.00 level comes into view and from this level prices would target the [..]

Technical Analysis – GBPJPY turns bullish but RSI approaches overbought level

Posted on November 11, 2016 at 2:48 pm GMT

GBPJPY has turned bullish after breaking above the key 130.00 level. Prices rose above the 50-day moving average on Thursday and this accelerated an advance to a high of 134.90 by late European session trading on Friday. The bias remains on the upside as the RSI is above 50 and trending up. This highlights the bullish market. However, the indicator has approached 70, which suggest the market is in overbought conditions, which could lead to some consolidation in the near [..]

FX Daily Outlook| 11-11-16

Posted on November 11, 2016 at 11:11 am GMT

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FX Daily Outlook| 10-11-16

Posted on November 10, 2016 at 10:42 am GMT

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Technical Analysis – USDJPY maintains bullish structure above 105 but nears overbought levels

Posted on November 10, 2016 at 9:07 am GMT

The big jump in USDJPY adds to the near-term bullish structure. The pair hit a high of 105.94 today and with RSI is in bullish territory well above 50, there is room for further gains to break above the key 106.00 level. The next target to the upside would be the July 27 high of 106.53. Above this there is important resistance at the July 21 high of 107.48. This is a strong resistance level as the market failed to [..]

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