Technical Analysis / Page 113

Weekly Technical Analysis – USDJPY, USDCAD, NZDUSD

Posted on July 10, 2023 at 12:46 pm GMT

Wednesday is when the RBNZ and BoC announce their interest rate decisions, so the New Zealand and Canadian currencies will attract special attention. US inflation data could make the FX market more volatile on the same day, shedding some extra light on whether the Fed will proceed with another rate hike this month. US CPI inflation –> USD/JPY Despite the significant spike in ADP employment data, Friday’s nonfarm payrolls report revealed a softer-than-expected job creation of 209k and a downward [..]

Technical Analysis – EURCHF hovers at lower part of prevailing rectangle

Posted on July 10, 2023 at 7:50 am GMT

EURCHF is edging higher today, battling again with the lower boundary of the rectangle that has been defining the price action since October 13, 2022. The bears remain firmly in control, but they probably have to deliver a sizeable sell-off soon before the market starts to seriously question their determination. Supporting the bears’ intentions, the stochastic oscillator is still reflecting a bearish tendency in the market. The same cannot be said for the Average Directional Movement Index (ADX) that remains [..]

Technical Analysis – Gold consolidates after failing to re-enter range

Posted on July 10, 2023 at 7:46 am GMT

Gold had been moving sideways for more than a month, but the bears managed to push the price below the lower boundary of that range. Even though bullion posted a mild recovery after bouncing off the three-month bottom of 1,893, its attempts to re-enter the neutral pattern have been repeatedly repelled around the 1,925 mark. The short-term oscillators currently suggest that the positive momentum is picking up, but bearish forces retain the upper hand. Specifically, the MACD crossed above the red [..]

Technical Analysis – GBPJPY ready to switch to corrective mode

Posted on July 7, 2023 at 9:02 am GMT

GBPJPY formed a steeper bullish tube in mid-June, which is now at risk of a breakdown as the bulls seem to have run out of fuel around a seven-and-a-half year high of almost 184.00. The tiny candlesticks at the top of the uptrend are witnessing fizzling buying interest and should the pair close clearly below the bullish formation and the 183.50 area today, the decline could eventually extend towards the 20-day exponential moving average (EMA) at 181.20. The support trendline, which [..]

Technical Analysis – USDCAD rebounds strongly from 9-month lows

Posted on July 7, 2023 at 8:00 am GMT

USDCAD had been in a steady downtrend since late May, generating a clear structure of lower lows. However, the pair found its feet at the nine-month bottom of 1.3115 and retraced back higher, with the price challenging the ascending trendline that connects the pair’s higher lows from November 2022 since early May. The momentum indicators currently suggest that near-term risks are tilted to the upside. Specifically, the RSI is flatlining comfortably above its 50-neutral mark, while the stochastics are positively [..]

Technical Analysis – Is it finally time for a meaningful correction in CHFJPY?

Posted on July 7, 2023 at 7:55 am GMT

CHFJPY is experiencing its fourth consecutive red-candle session after recording an all-time high of 161.64. It has been an almost exponential move from the January 13, 2023 low of 137.42 and like other JPY pairs, CHFJPY has not experienced a proper correction since the mid-March sell-off. The momentum indicators are gradually opening the door to a sizeable pullback. The stochastic oscillator is gliding lower but remains in its overbought (OB) territory. A break below its OB area would be clearly [..]

Technical Analysis – Silver moves lower today, respects the downward sloping trendline

Posted on July 6, 2023 at 2:05 pm GMT

Silver is edging lower today as the lower boundary of the December 2022-February 2023 rectangle has taken up a resistance role. The June 21, 2023 bearish breakout was stopped again at the 22.24-22.59 area, prompting a move higher and disappointing the bears. However, a bearish series of lower highs and lower lows since the May 5, 2023 high remains firmly in place. Momentum indicators are equally confused at this stage. The 50-midpoint continues to act as an upper barrier for [..]

Technical Analysis – EURGBP at risk of downtrend resumption

Posted on July 6, 2023 at 1:55 pm GMT

EURGBP started July’s session on the wrong foot, extending its pullback from a one-month high of 0.8657 below its short-term simple moving averages (SMAs) and towards June’s low of 0.8517. Selling pressures could stay present in the coming sessions given the downward trajectory in the momentum indicators, with traders likely keeping a close eye on the 0.8535-0.8517 region. The 61.8% Fibonacci retracement of the previous 0.8201-0.9249 uptrend is currently balancing downside forces around the same location. Hence, a close below that base [..]

Technical Analysis – ETHUSD pulls back from 2-month peak

Posted on July 6, 2023 at 1:48 pm GMT

ETHUSD (Ethereum) had been in a steady advance since mid-June, posting a fresh two-month high of 1,976 on Monday. However, the digital coin quickly surrendered some gains, with the bears currently attacking the 1,900 region. The momentum indicators currently suggest that bullish forces are subsiding but have not totally surrendered yet. Specifically, the stochastic oscillator is ticking down near its overbought zone, while the RSI is losing some ground but holds comfortably above its 50-neutral mark. Should sellers try to push [..]

Technical Analysis – GBPAUD at 17-month high but bearish pressure intensifies

Posted on July 6, 2023 at 12:35 pm GMT

GBPAUD has almost completed a 17-month long round-trip as it is currently testing the January 28, 2022 high. It has been an impressive 20% rally since the September 2022 lows with the price action religiously obeying the September 26, 2022 upward sloping trendline. The recent pattern of higher highs remains in place, but the June 12 lower low is not a positive signal for the bulls. In addition, the momentum indicators are showing rally exhaustion signs. The Average Directional Movement Index (ADX) is [..]

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Technical Analysis