Technical Analysis / Page 126

Technical Analysis – Will USDCHF start a new bullish wave?

Posted on June 2, 2023 at 11:12 am GMT

USDCHF is trading at the bottom of an upward-sloping channel, increasing speculation that the pair is preparing for its next bull run as traders are eagerly waiting for the US nonfarm payrolls release. The Stochastic oscillator on the four-hour chart rotated northwards, but it has yet to exit the oversold region above 20, suggesting that some patience is still necessary. In other warning signals, the pair is still comfortably above the lower Bollinger band, questioning the case for an upside reversal. A step above [..]

Technical Analysis – Deutsche Bank at a crossroads

Posted on June 2, 2023 at 11:07 am GMT

Deutsche Bank is still trying to find its direction after the March correction. It has been range-trading over the past 45 days with a symmetrical triangle forming. This pattern is a combination of lower highs and higher lows, confirming the uncertainty that appears to dominate the market participants’ thoughts. This structure does not give a strong indication of the direction of the imminent breakout, but it usually follows the dominant trend. However, if the post-breakout move is not significant, there [..]

Technical Analysis – Are GBPCAD bulls gearing up for another rally?

Posted on June 2, 2023 at 9:00 am GMT

GBPCAD is currently hovering around the busy 1.6813-1.6862 area as the bulls appear to be taking a breather after reaching a 14-month high on May 4, 2023. In the meantime, GBP bears have failed to take advantage of the drop below the November 4, 2022 upward sloping trendline, potentially confirming that the bulls retain the upper hand. With the RSI hovering around its 50-midpoint and the Average Directional Movement Index (ADX) edging below its 25-threshold, the onus falls on the stochastic oscillator to point to [..]

Technical Analysis – USDCAD shifts focus to the downside after deep fall

Posted on June 2, 2023 at 8:13 am GMT

USDCAD plunged by 1.2% in the first trading day of June, sliding back below its simple moving averages (SMAs) to mark a new two-week low of 1.3417 on Friday. The fast downside correction follows the double top creation around the tough resistance of 1.3650, which raised the risk of a bearish continuation. Overall, there are barely any bullish signs in the market, although a pause or a rebound near the 1.3400 level cannot be excluded as the stochastic oscillator is quickly approaching its 20 oversold level. The [..]

Technical Analysis – GBPJPY extends advance to 7½-year high

Posted on June 2, 2023 at 7:34 am GMT

GBPJPY has been stuck in an upward sloping channel since early April, generating a structure of higher highs and creating a fresh 7½-year peak of 174.26 last Tuesday. Even though the pair experienced a minor correction after that, it quickly stormed back higher to challenge its recent multi-year high. The short-term oscillators currently suggest that bullish forces retain the upper hand. Specifically, the RSI has flatlined slightly below its 70-overbought zone, while the MACD histogram is holding above both zero and [..]

Technical Analysis – Will the US 100 index come under profit-taking pressure?

Posted on June 1, 2023 at 2:19 pm GMT

The US 100 stock index (cash) opened June’s trading session on a neutral note, though the formation of a bearish doji at the top of the uptrend keeps feeding speculation that the latest remarkable rally has probably peaked. The RSI and the stochastic oscillator are witnessing overbought conditions. Yet, with the former standing above 70 and the latter preserving a horizontal trajectory around 80, upside pressures could last a bit longer, especially if the 14,215 nearby support area stands firm. In the event the price heads lower, [..]

Technical Analysis – Gold rotates near key support trendline

Posted on June 1, 2023 at 12:34 pm GMT

Gold changed direction to the upside in the four-hour chart after securing another strong foothold around 1,938 and near the ascending trendline drawn from November 2022. The precious metal rose as high as 1,974 before giving up some ground, though there is potential for another test near that peak as the RSI and the MACD have not exited the bullish area yet. Nevertheless, some caution is warranted given the sideways trajectory in the aforementioned indicators and the negative slope in the stochastic oscillator. A [..]

Technical Analysis – WTI oil futures pick up negative vibes

Posted on June 1, 2023 at 9:33 am GMT

WTI oil futures registered their largest monthly decline since November 2021 in May, closing marginally below the 68.35 base, which had been acting as a buffer to downside movements since mid-March. The price is currently struggling to climb back above that threshold of 68.35, with the technical indicators reducing the odds for a significant bullish breakout. The RSI has resumed its negative momentum, falling back into the bearish zone. Likewise, the MACD has slipped below its red signal line and the [..]

Technical Analysis – AUDUSD escapes bearish breakdown but bias weak

Posted on June 1, 2023 at 7:34 am GMT

AUDUSD bounced back above the nearby 0.6483 base, which has been buffering selling forces since the start of May, after a flash spike to a new six-month low of 0.6457 on Wednesday. The rebound in the stochastic oscillator promotes an upside breakout or some stabilization, though stronger bullish signals are required to boost market sentiment. Moreover, the RSI is comfortably below its 50 neutral mark and the MACD remains negatively charged below its red signal line, both suggesting sellers have not abandoned their efforts [..]

Technical Analysis – Bearish breakout in NZDUSD; will it last?

Posted on June 1, 2023 at 7:29 am GMT

NZDUSD has finally managed to break below the rectangle that has been dictating the price action since February 2023, as NZD bears continue to recover part of the losses they have been suffering by the rally that commenced on October 13, 2022. However, the downside breakout has not been impressive as NZD bulls appear determined to halt this correction. Having said that NZD bears probably feel in control of the market. The Average Directional Movement Index (ADX) is edging higher, signaling [..]

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