Technical Analysis / Page 120

Technical Analysis – EURCHF rally could extend further if bulls break the 0.9833 area

Posted on June 20, 2023 at 9:23 am GMT

EURCHF has returned inside the rectangle that has been defining the price action since October 13, 2022. The bears must feel under the weather as their latest downward breakout failed once again, despite almost testing the 0.9665 level. They should probably regroup as the bulls appear determined to stage a proper rally towards the higher end of the rectangle. The bulls’ intention rests on their ability to break the busy 0.9827-0.9833 range. The momentum indicators are not very supportive of [..]

Technical Analysis – US 100 cash index rally halts at key level

Posted on June 20, 2023 at 7:44 am GMT

The US 100 index is edging slightly lower after recording another 2023 high. The index stands around 30% higher than the March 13, 2023 low, with the move since the April consolidation being almost exponential. The bears are again trying to record a small pullback. Their last two attempts to stage a correction, in May 22 and June 6 respectively, proved unsuccessful as the bulls used this price action to take a breather before pushing the US 100 index even [..]

Technical Analysis – Where next for EURJPY?

Posted on June 20, 2023 at 7:33 am GMT

EURJPY experienced a huge week after a bullish triangle breakout, appreciating by more than 3.0% to an almost 15-year high of 155.37 in what was the fastest rally in more than a decade. The bulls are trying to revive their positive momentum near their recent highs as the RSI and the stochastic oscillator are flagging overbought conditions. Note that the MACD is currently testing a former peak area, raising some caution too. The nearest obstacle could be around 156.00, where the resistance trendline which connects [..]

Technical Analysis – GBPUSD surges to fresh 14-month high

Posted on June 20, 2023 at 7:13 am GMT

GBPUSD has been in a prolonged uptrend since October 2022 supported by its long-term ascending trendline. Even though the pair stormed to a fresh 14-month high of 1.2847 on Friday, it quickly pared some gains due to reaching overbought conditions. The momentum indicators currently suggest that bullish forces are holding the upper hand. Specifically, the RSI is hovering slightly below its 70-overbought mark, while the MACD is strengthening above its red signal line in the positive zone. Should buying pressures intensify [..]

Technical Analysis – US 500 stock index eases from 14-month high, looks overbought

Posted on June 19, 2023 at 2:50 pm GMT

The US 500 stock index (cash) is pulling back slightly from Friday’s highs when it briefly hit a 14-month peak of 4,446.77. The index has been on a roll during June, gaining more than 5%, but it could be about to record its first two consecutive daily declines this month as the positive momentum wanes. Both the RSI and stochastics are pointing down in the overbought region, signalling some selling pressure in the very near term. However, in the short-to-medium [..]

Weekly Technical Analysis – GBPUSD, EURUSD, USDCHF

Posted on June 19, 2023 at 10:56 am GMT

The Bank of England (BoE) and the Swiss National Bank (SNB) will feature in the next series of central bank meetings on Thursday. Investors are speculating that some policymakers might debate a bolder half-point rate hike, with the talks likely being more intense within the SNB. Meanwhile in the eurozone, Friday’s preliminary business PMI figures could be important to watch amid a cracking economic backdrop. Bank of England policy announcement –> GBP/USD The British pound surged to its highest level [..]

Technical Analysis – EURUSD slices through 50-day SMA but advance pauses

Posted on June 19, 2023 at 8:20 am GMT

EURUSD had been experiencing a downside correction after peaking at the 13-month high of 1.1094. However, the pair has been regaining ground since it found its feet at the May low of 1.0633, crossing above its 50-day simple moving average (SMA) before its rebound stalled at the upper end of the Ichimoku cloud. The momentum indicators currently suggest that near-term risks are tilted to the upside. Specifically, the RSI has flatlined above its 50-neutral mark, while the MACD histogram jumped above [..]

Technical Analysis – GBPCAD enjoys another bullish breakout; will it be third time lucky for the bulls?

Posted on June 16, 2023 at 10:44 am GMT

GBPCAD bulls are staging another upward breakout from the rectangle that has been affecting the price action since December 2022. They have already failed twice at decisively breaking this rectangle and recording a significant upleg above the 1.6862 area. This time the technical picture appears to be slightly more supportive of the bulls’ intention. The Average Directional Movement Index (ADX) is stuck below its 25-threshold and essentially remains in waiting mode for the next trend. Interestingly, both the RSI and the stochastic oscillator [..]

Technical Analysis – GBPAUD at a crossroads as bears come up against a long-term trendline

Posted on June 16, 2023 at 8:46 am GMT

GBPAUD is hovering just above the 1.8517 level, testing the support set by the September 26, 2022 upward sloping trendline. This is a key moment for this pair as a break below this long-term trendline would open the door to a much stronger correction, cancelling the recent bullish pattern of higher highs. The anticipation is depicted in most momentum indicators. The Average Directional Movement Index (ADX) is hovering around its 25-threshold and hence remains in waiting mode, and the RSI stands just [..]

Technical Analysis – GBPJPY explodes to fresh 7½-year highs

Posted on June 16, 2023 at 8:38 am GMT

GBPJPY has been stuck in a prolonged uptrend since the beginning of the year, generating a structure of consecutive multi-year highs. In the near-term, the price managed to jump above the restrictive trendline that held strong since January, triggering a strong advance towards a fresh 7½-year peak in today’s session. The momentum indicators currently suggest that the recent rally could be overstretched as both the RSI and the MACD histogram are strengthening well within their overbought territories, while the price is trading above the [..]

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