Technical Analysis / Page 112

Technical Analysis – AUDCAD leapfrogs higher; will the bears react?

Posted on July 12, 2023 at 2:33 pm GMT

AUDCAD is recording an impressive green candle today, the strongest 1-day move higher since the May 2, 2023 session. The pair is currently hovering just below the busy 0.8927-0.8970 area, quickly recovering from the 2023 low of 0.8739 recorded on June 30. The medium-term trend clearly remains bearish and the current upleg could be seen as a healthy reaction by the bears. The stochastic oscillator is probably not sharing the same feeling as this indicator is on a decent upward path, [..]

Technical Analysis – Gold trends higher; resistance within 1,940 area

Posted on July 12, 2023 at 10:27 am GMT

Gold has been swinging higher in the four-hour chart since hitting a three-month low of 1,892 at the end of June, rising as high as 1,940 today. The precious metal is hovering around a familiar constraining zone and near the 200-period simple moving average, which caused a soft decline over the past few hours. The 23.6% Fibonacci retracement of the previous downleg is cementing that wall as well. Hence, traders might wait for a clear close above the 1,936-1,940 boundary before they target the upper band [..]

Technical Analysis – USDJPY sellers could stay in play

Posted on July 12, 2023 at 7:53 am GMT

USDJPY has been sold aggressively since the NFP release last Friday, falling by almost 2.0% to a one-month low of 139.30. The bears snapped the latest bullish wave from mid-June, which peaked at 145.00, currently aiming for a close below the 50-day exponential moving average (EMA) and the support trendline from the March low at 140.30. Given the negative trajectory in the momentum indicators, the freefall in the price is expected to gain another leg to enter the 138.55-138.00 constraining zone, where [..]

Technical Analysis – USDCAD lower again; stochastic could dictate the next move

Posted on July 12, 2023 at 7:49 am GMT

USDCAD’s recovery proved very short-lived as the pair has been dropping aggressively over the past four sessions. It is currently hovering inside the busy 1.3190-1.3225 area with the bears probably keen on continuing the recent series of lower highs and lower lows. The next trough has to occur below the 1.3116 low recorded on June 27 in order to keep this structure intact and valid. The continued convergence of the 100- and 200-day simple moving averages (SMAs) supports the possibility [..]

Technical Analysis – Will USDCHF get back on a downtrend?

Posted on July 11, 2023 at 12:52 pm GMT

USDCHF went downhill to print an eight-and-a-half year low of 0.8810 slightly below May’s trough on Tuesday after getting rejected near its 20-day simple moving average (SMA). Another leg down is possible as the RSI and the stochastic oscillator have yet to bottom out in the oversold area. Yet, with the price set to close below the lower Bollinger band for the second consecutive day, a turning point could be near. If the price sinks below May’s trough of 0.8819, the next [..]

Technical Analysis – UK 100 cash index sell-off halts near March 2023 lows

Posted on July 11, 2023 at 8:54 am GMT

The UK 100 cash index is trading sideways today following an aggressive sell-off since the July 3 local peak. The index has actually been experiencing a series of lower highs and lower lows since April 21, 2023, religiously obeying a downward sloping trendline. It is now hovering a tad above the March 20, 2023 low, potentially the first major stock index to revisit these lows. The current downleg enjoys the support of most momentum indicators. More specifically, the Average Directional [..]

Technical Analysis – EURJPY pulls back strongly from 15-year high

Posted on July 11, 2023 at 8:06 am GMT

EURJPY has been in a strong uptrend since the beginning of the year, posting a fresh 15-year high of 157.99 in late June. However, this rally appears to be fizzling out, with the pair experiencing a downside correction in the short term. The momentum indicators currently suggest that bearish forces are strengthening but have not taken control yet. Specifically, the RSI retreated massively but still holds above its 50-neutral mark, while the MACD declined below its red signal line in the [..]

Technical Analysis – GBPUSD renews bullish outlook

Posted on July 11, 2023 at 7:50 am GMT

GBPUSD opened the week with mild gains, expanding its NFP rally above June’s peak and to a fresh 15-month high of 1.2912 early on Tuesday. There is room for further development, as the technical indicators maintain a clear positive trajectory. Yet, with the RSI and the stochastic oscillator prodding their overbought levels, the bullish wave could soon take a breather. The pair is currently testing the tentative ascending line from last December at 1.2893, while the resistance trendline from April is [..]

Technical Analysis – Is the US 100 cash index on the brink of a correction?

Posted on July 11, 2023 at 6:44 am GMT

The US 100 index is trading sideways today as a double top pattern appears to be forming. This bearish structure will become valid if the 14,687 neckline is broken, with an assumed target at the 14,000 area. If this move materializes, it will be the first decent correction since the March 2023 banking sector-induced sell-off. The momentum indicators are probably leaning towards a correction as well. The Average Directional Movement Index (ADX) remains a tad above its 25-threshold and thus signalling a [..]

Technical Analysis – US 500 index may remain downbeat

Posted on July 10, 2023 at 1:39 pm GMT

The US 500 stock index (cash) entered a new bearish phase after pausing its uptrend at a new 15-month high of 4,458 and slightly below the strong resistance line from December. The falling RSI and the MACD have confirmed a lower high, showing a bearish divergence against the market trend. The stochastic oscillator is also negatively charged and has yet to touch its 20 oversold level, flagging more losses ahead. Despite the discouraging technical signals, traders may not easily reduce their exposure [..]

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