Technical Analysis / Page 485

Technical Analysis – GBPUSD unlocks 1.2900; holds in upward channel

Posted on July 28, 2020 at 6:36 am GMT

GBPUSD has been in a strong bullish tone for seven consecutive days, climbing to a more than four-month high of 1.2903. The pair is challenging the upper boundary of an upward sloping channel, which has been holding since the end of March. In momentum indicators, the MACD oscillator is holding above its trigger and zero lines, while the RSI is approaching the overbought territory, suggesting a possible pullback in the short-term timeframe. The Ichimoku lines are still pointing upwards, while the 20- and 40-day simple moving [..]

Technical Analysis – US 500 index spots bearish divergence; triangle in focus

Posted on July 27, 2020 at 12:23 pm GMT

The US 500 index (cash) stabilized near the 3,200 familiar support level after two consecutive bearish days. Previously, the market had printed a new higher high at 3,292, further strengthening the four-month old uptrend. However, the RSI seems to have registered a lower peak at the same time, increasing worries about a bearish divergence. The slowing MACD, which has slipped below its red signal line, is another discouraging signal. Selling orders could pick up momentum if the price drops below [..]

Technical Analysis – USDJPY exits range area and tumbles to 4½-month lows

Posted on July 27, 2020 at 9:43 am GMT

USDJPY crashed out of the 118.15-106.00 range area and towards a 4 ½-month low of 105.37 on Monday, raising speculation that the sell-off may continue. The 38.2% Fibonacci retracement of the 112.1-101.17 downleg is currently supporting the market. But if it soon gives up, the price could decelerate to 105.00, while lower, the bears may pause around the 104.35 barrier, which is slightly below the 2019 trough. Meanwhile, the RSI and the stochastics in the four-hour chart look to have bottomed out [..]

Technical Analysis – Gold shines at a new record high after 9 years

Posted on July 27, 2020 at 7:36 am GMT

Gold stretched its unstoppable rally to uncharted territory on Monday and to a new top of 1,944 after easily surpassing the 2011 record high of 1,920. A downside correction or some consolidation would not be a big surprise in the short-term as the market is trading well into the overbought zone according to the rising RSI and the Stochastics which have already registered a bearish cross above 80. In this case, the 1,900 round number could immediately add footing under the price, deterring any [..]

Technical Analysis – EURUSD touches fresh 22-month high above 1.1700

Posted on July 27, 2020 at 6:06 am GMT

EURUSD has been creating one of the strongest bullish rollercoasters of the last couple months, recording a new 22-month high above the 1.1700 handle at 1.1723. According to the technical indicators, the MACD is strengthening its upside tendency well above its trigger and zero lines, while the RSI is hovering in the overbought territory with strong momentum, however, negative correction may be on cards in the near future. In case of steeper increases, the price could open the door for [..]

Technical Analysis – US 30 index dives after reaching 1-month high again

Posted on July 24, 2020 at 9:59 am GMT

The US 30 cash index is tumbling over the last couple of sessions in the 4-hour chart, penetrating the 50-period simple moving average (SMA) and moving towards the 100-period SMA. From the technical viewpoint, the RSI is falling beneath the neutral threshold of 50, while the MACD is losing momentum below its trigger line. More losses could take the index towards the 38.2% Fibonacci retracement level of the up leg from 24,556 to 27,171 at 26,174, which overlaps with the [..]

Technical Analysis – USDCAD trapped below trendline; targets June’s lows

Posted on July 24, 2020 at 7:28 am GMT

USDCAD was forced to shift south after the descending trendline and the 23.6% Fibonacci level of the 1.4667-1.3314 downleg held firm once again, with the price tumbling as low as 1.3350 on Thursday. The pair is currently consolidating its losses near the 1.3380 support area but the technical indicators suggest that the bears have not abandoned the sell-off yet; the MACD is strengthening to the downside and below its red signal line, while the RSI remains comfortably below its 50 neutral [..]

Technical Analysis – GBPUSD holds near 6-week high; indicators are mixed

Posted on July 24, 2020 at 7:13 am GMT

GBPUSD continues to rise above the Ichimoku cloud and the short-term SMAs, remaining near the six-week high of 1.2770, achieved earlier today. According to the RSI, positive momentum could push for further gains in the short-term as the indicator picks up steam above its 50 level. However, the MACD is flattening near its trigger line and negative corrections cannot be excluded. In the positive scenario, where the price continues to expand above today’s high of 1.2770, a new top could be formed around 1.2815, taken from the high on [..]

Technical Analysis – EURJPY retreats after reaching 7-week high

Posted on July 23, 2020 at 12:32 pm GMT

EURJPY is on the sidelines after it reached a fresh seven-week high around 124.28 and it looks ready for a possible pull back. Technically, the RSI is returning lower after it climbed to the overbought zone, while the stochastic is heading south, both hinting for a downside retracement in the very short-term. Despite those signals, the short-term simple moving averages and the Ichimoku indicator are still suggesting an upside tendency. Immediate support to further declines may be taking place around [..]

Technical Analysis – USDCHF surrenders to bears; nearby support eyed

Posted on July 23, 2020 at 10:43 am GMT

USDCHF is bearishly exposed to the nearby 0.9258 support level after failing to crawl above the 61.8% Fibonacci retracement level of the March rally last week. The technical indicators are framing a discouraging picture for the short-term too, as the price is further deviating below the downward-sloping 20-day simple moving average (SMA) and the MACD is gaining negative momentum below its red signal line. The falling RSI, which is ready to cross below its 30 oversold mark is another negative [..]

Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. XM accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The research and analysis does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it.

It has not been prepared in accordance with legal requirements designed to promote the independence of research, and as such it is considered to be marketing communication. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We aim to establish, maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence, which requires our employees to act in our clients’ best interests and to disregard any conflicts of interest in providing our services.

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losing all of your invested capital, so please make sure that you fully understand the risks involved.

Technical Analysis

XM Live Chat