Technical Analysis / Page 178

Technical Analysis – USDJPY flounders as the new year kicks in

Posted on January 2, 2023 at 10:28 am GMT

USDJPY could not gain fresh impetus on the first trading day of the year, retaining a muted tone near December’s four-month low of 130.55. The pair suffered its worst monthly loss since 2016 in December, with the decline worsening significantly following the rejection from the key resistance trendline that connects all the highs from the peak of 151.93. Failure to reach that trendline last week increased the odds for more downside in the four-hour timeframe. The negative trajectory in the [..]

Technical Analysis – EURCHF ready to escape the recent range trading?

Posted on January 2, 2023 at 9:16 am GMT

EURCHF has been range-trading since early December as the market focused on developments elsewhere. Both the Average Directional Movement Index (ADX) and RSI confirm this lack of trend, an indication of market complacency. On the other hand, while the Stochastic oscillator is trading around its midpoint, it appears to be sending a potential bearish signal. It is trying to break below the moving average. While this potential bearish signal seems to be in its infancy, the same cannot be said [..]

Technical Analysis – EURUSD trades sideways despite golden cross

Posted on January 2, 2023 at 9:10 am GMT

EURUSD has been edging higher since early October after its long-term downtrend ceased at the 20-year low of 0.9535. In the short term, the pair has been trading sideways, with the completion of a golden cross between the 50 and 200-day simple moving averages (SMAs) failing to spark an upside rally. The momentum indicators currently suggest that bullish forces are in control. Specifically, the RSI is pointing downwards but remains comfortably above its 50-neutral mark, while the stochastic oscillator is ascending [..]

Technical Analysis – Gold has a promising start to 2023

Posted on January 2, 2023 at 8:38 am GMT

Gold sought fresh gains on the first trading day of the year after a remarkable 8.0% rally to 1,833 in December. According to the technical indicators, the market seems to have the foundation to flourish further. The 20- and 200-day simple moving averages (SMAs) have recently bullishly crossed each other, endorsing the positive trend in the short-term picture. The RSI, although in horizontal trajectory, is comfortably above its 50 neutral mark and is pointing upwards, while the MACD has recouped some [..]

Technical Analysis – Gold in waiting mode but underlying forces could reveal their hand soon

Posted on December 29, 2022 at 1:26 pm GMT

Gold is enjoying a quieter session today as the market prepares for the new trading year. This week, amidst lower liquidity conditions, gold managed to trade at 1,833, the highest level since June 27. But it failed to hold on these gains dropping to the current level of 1,806. Since December 5 gold has been trading inside a well-defined upward sloping trend channel, recording a series of higher highs and higher lows. This trend channel activity coupled with the recent [..]

Technical Analysis – AUDUSD stays trapped below familiar resistance

Posted on December 29, 2022 at 8:47 am GMT

AUDUSD set another foothold around the two-month-old ascending trendline last week, correcting higher to test the 0.6800 level on Wednesday. Despite the pickup, the 38.2% Fibonacci of the 0.7660–0.6169 downtrend and the 20-day simple moving average (SMA), which is also the middle Bollinger band, restrained the bulls around 0.6740 for the eighth consecutive trading day. The momentum indicators are not giving directional signals, with the RSI hovering around its 50 neutral mark and the MACD flattening clearly below its red signal line. [..]

Technical Analysis – WTI oil futures retreat after 50-day SMA rejects advance

Posted on December 29, 2022 at 8:43 am GMT

WTI oil futures (February delivery) have been stuck in a downtrend since June but managed to bounce at the one-year low of 70.30 and recoup some losses. However, this recovery proved to be short-lived after the 50-day simple moving average (SMA) curbed the commodity’s upside. The momentum indicators currently suggest that bearish forces have gained the upper hand. Specifically, the RSI has fallen below its 50-neutral mark, while the stochastic oscillator is sloping downwards after exiting the 80-overbought territory. An extension of [..]

Technical Analysis – NZDUSD back above 0.63; will 20-SMA cap the advance?

Posted on December 28, 2022 at 1:55 pm GMT

NZDUSD is climbing again after the recent pullback deflected off the 200-day simple moving average (SMA). The price is currently attempting to pierce above its 20-day SMA just beneath the 0.6350 mark, while to the downside, there is immediate support from the 38.2% Fibonacci retracement of the February 2021-October 2022 downtrend at 0.6257, as well as the 200-day SMA slightly lower. The momentum indicators suggest today’s rebound has scope to stretch further in the coming days. The stochastics are rising [..]

Technical Analysis – JP225 index consolidates as market participants weigh their options

Posted on December 28, 2022 at 9:27 am GMT

The JP225 cash index is consolidating at the 26,300s area, within a tight range established in the past few sessions following the drop on December 20. Market participants appear to be evaluating their options for the new trading year, especially as the convergence of the simple moving averages (SMA) seems to point to a sizeable move ahead. The bears appear to be more relaxed at this juncture as the aggressive October 3 – November 24 upmove has almost entirely been [..]

Technical Analysis – GBPUSD battles with 200-day SMA as pullback extends

Posted on December 28, 2022 at 9:02 am GMT

GBPUSD has been edging higher after finding its feet at the all-time low of 1.0324 in late September. Even though the pair has staged a strong rebound, it is currently experiencing downside correction, with the 200-day simple moving average (SMA) acting as a strong floor. The short-term oscillators currently suggest that bearish forces are in control. Specifically, the RSI slid below its 50-neutral mark, while the MACD histogram is declining below its red signal line in the positive territory. If the negative [..]

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