Technical Analysis / Page 115

Technical Analysis – Is EURJPY overbought?

Posted on July 4, 2023 at 8:27 am GMT

EURJPY bulls ran out of fuel after unlocking a 15-year high of 157.92 last week. The pair remained trapped below the 158.00 ceiling for the fifth consecutive trading day, increasing speculation that the latest fast rally might have matured. The RSI and the stochastic oscillator have been moving sideways within the overbought zone since mid-June in the daily, weekly and monthly timeframes, backing this narrative too. The market structure in the very short-term picture, however, seems to be taking the shape [..]

Technical Analysis – GBPUSD regains traction after correction pauses

Posted on July 4, 2023 at 7:43 am GMT

GBPUSD has been in a prolonged uptrend since October 2022 supported by its long-term ascending trendline. In the near term, the pair experienced a pullback from its 14-month high of 1.2847, but it quickly found its feet and reversed back higher. Despite the recent downside correction, the momentum indicators are tilted to the bullish side. Specifically, the RSI is flat after bouncing off its 50-neutral mark, while the stochastics are edging higher following their bullish cross near the oversold territory. If [..]

Technical Analysis – US 100 cash index prepares for a new 2023 high

Posted on July 4, 2023 at 6:58 am GMT

The US 100 index is moving sideways today, trading a tad below 15,258 that has morphed into a significant resistance level. The bulls failed to clear this level on their first attempt on June 16, 2023, and are now preparing the stage for another retest. The bears continue to exhibit an inability to record a decent pullback despite the fact that the aggressive upleg, since the March 13, 2023 low, lacks a significant correction. The momentum indicators appear mixed at this stage. The Average [..]

Technical Analysis – JP225 stock index looks overbought as it revisits 33-year high

Posted on July 3, 2023 at 2:24 pm GMT

The Japan 225 stock index (cash) is trading near the June 16 top of 34,006 – a more than three-decade high – as it extends its rebound from last week’s lows. However, the prospect of further gains and hitting fresh 33-year highs is looking a bit questionable amid not very encouraging signals from the momentum indicators. The fast stochastic has entered the overbought region above 80, suggesting that this latest upleg is running on limited juice. The MACD, meanwhile, has [..]

Weekly Technical Analysis – USDJPY, AUDUSD, Gold

Posted on July 3, 2023 at 2:07 pm GMT

We expect the start of the week to be quiet in the US as traders enjoy a long weekend, celebrating the July 4th Independence Day with fanfare and fireworks. The week ahead, however, could put markets back on the central bank watch as a bulk of employment data, including Friday’s all important nonfarm payrolls, could influence the Fed’s next rate decision. Monday’s ISM manufacturing PMI figures will not be ignored either despite the holiday mood. Elsewhere, the Reserve Bank of [..]

Technical Analysis – AUDJPY rebounds from near key support zone

Posted on July 3, 2023 at 1:00 pm GMT

AUDJPY entered a sliding mode after it hit resistance at 97.65 on June 19. That said, the slide was stopped near the 95.15 key support zone, which offered strong resistance in the recent past and specifically during October. Combined with the fact that the price structure remains one of higher highs and higher lows above the uptrend line drawn from the low of March 24 and above all the plotted exponential moving averages (EMA), this keeps the near-term picture positive. [..]

Technical Analysis – Gold attempts to re-enter range after bearish breakout

Posted on July 3, 2023 at 10:10 am GMT

Gold had been stuck within a sideways pattern for more than a month, but the bears managed to push the price below the lower boundary of that range. However, gold quickly found its feet and retraced higher, hinting that the decline could prove to be a false breakout. Despite the latest bounce, the short-term oscillators are not providing positive signs for buyers. The RSI has flatlined way beneath its 50-neutral mark, while the MACD remains below both zero and its red [..]

Technical Analysis – EURUSD pulls back but 50-day SMA curbs decline

Posted on July 3, 2023 at 8:24 am GMT

EURUSD has experienced a downside correction after its latest advance got rejected at the 1.1011 territory on June 22. Even though the pair temporarily bounced off the congested region that includes its 50-day simple moving average (SMA) and the upper boundary of the Ichimoku cloud, the bears continue to apply downside pressure. The momentum indicators currently suggest that the positive momentum is waning. Specifically, the MACD has dropped below its red signal line but remains positive, while the stochastic oscillator is [..]

Technical Analysis – EURCHF stuck at lower part of prevailing rectangle

Posted on July 3, 2023 at 7:25 am GMT

EURCHF remains firmly inside the rectangle that has been defining the price action since October 13, 2022. It is currently trading at the lower section of this rectangle, hovering around the 50-day simple moving average (SMA). The downward sloping trendline from June 9, 2022 appears to cap the upside at this stage with the bears contemplating the idea of another breakout. The persistent SMAs’ convergence is usually associated with an imminent move, but it also reveals a delicate balance between [..]

Technical Analysis – GBPCAD remains inside the rectangle; recent pullback might have legs

Posted on June 30, 2023 at 1:26 pm GMT

GBPCAD returned inside the rectangle that has been affecting the price action since December 2022. The third upward breakout proved false again, with the bulls scratching their heads about the correct set-up that could finally help them stage a strong rally. In the meantime, historical performance is pointing to a probable retest of the lower boundary of the rectangle structure, despite the muted momentum indicators. GBPCAD appears to be stuck between the 50- and 100-day simple moving averages (SMAs) with [..]

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