Technical Analysis / Page 571

Technical Analysis – AUDUSD starts year in red after fresh 6-month top

Posted on January 2, 2020 at 11:11 am GMT

AUDUSD stretched its nine-day rally to a new six-month high of 0.7030 on December 31, penetrating the upward sloping channel to the upside, before pulling slightly lower. The pair rallied very sharply at the end of the previous year, but now it seems to be losing momentum as the RSI is turning lower below the 70 level for a potential downside correction. Also, the stochastic oscillator completed a bearish crossover within the %K and %D lines in the overbought area, indicating more [..]

Technical Analysis – NZDUSD maintains its ascent, pushing for higher peaks

Posted on January 2, 2020 at 9:25 am GMT

NZDUSD opened below the support of 0.6722, after plotting a five-month high of 0.6754 for the end of 2019. The picture for the pair still looks strongly positive, with the Ichimoku lines and all simple moving averages (SMAs) sustaining their bullish crossovers and their upward slopes. The short-term oscillators lean towards the positive picture despite the recent weakening. The MACD, deep in the positive region, has slipped slightly below its red trigger line, while the RSI – though falling in the [..]

Technical Analysis – USDCAD ready to test 2019 lows

Posted on December 31, 2019 at 10:32 am GMT

USDCAD posted significant losses in recent days, with the pair now looking ready to test the 2019 low of 1.3015 at any moment. If sellers manage to pierce and close below that zone, that would turn the broader picture to negative, setting the stage for more declines in the New Year. Short term momentum oscillators are endorsing the bearish picture. The RSI is currently testing its 30 line, while the MACD – already negative – is also below its red [..]

Technical Analysis – CHI 50 stock index targets 2019 peak but bulls may lose momentum

Posted on December 31, 2019 at 10:02 am GMT

ChIna’s 50 stock index (CHI50) closed the year slightly below the 2019 top of 14,456 on Tuesday. Technically, the positive momentum in the MACD, which jumped above its red signal line, suggests that there is still some room for improvement in the short-term. The RSI is bullish as well, though the indicator is not far below its 70 overbought mark which previously acted as resistance, hinting that any additional upside move may come softer in the coming sessions. Therefore, in [..]

Technical Analysis – GBPUSD rebound may face challenge within nearby resistance area

Posted on December 31, 2019 at 8:32 am GMT

GBPUSD is pushing on with efforts to correct the sharp sell-off off the 1 ½-year high of 1.3513 which led to 1.2900 last week. The price has returned into the 1.3100 territory and is trying to expand above the 20-day simple moving average (SMA). However even though the RSI and the MACD are holding an upward direction, questions are arising as to whether the bulls are strong enough to overcome the 1.3146-1.3175 area, which includes the 23.6% Fibonacci of the [..]

Technical Analysis – USDJPY bulls lose battle with resistance trendline

Posted on December 30, 2019 at 2:41 pm GMT

USDJPY pushed lower on Monday and back towards the 109.00 level as the strong descending trendline that joins all the lower highs since mid-September 2018 capped upside movements once again. The slowing RSI, which heads towards its 50 neutral mark and the easing momentum in the MACD, which lies near its red signal line, are ruling out a meaningful rally in the short-term. A decline below 109.00 could strengthen negative momentum probably towards the 108.40 support area, where the 50% Fibonacci retracement of the [..]

Technical Analysis – US 500 index prints bearish shooting star candle at fresh record high

Posted on December 30, 2019 at 12:01 pm GMT

The US 500 stock index seems to have formed a bearish shooting star candle on Friday in the same day it unlocked a fresh record high of 3,251 and it remains to be seen whether the bears will take the lead in the coming sessions. Overbought conditions have already been detected as the RSI has been flattening above 70 for more than a week now and the Stochastics are turning south after posting a bearish cross above 80. The slowdown in the MACD further [..]

Technical Analysis – EURUSD bulls may pick up steam if the 1.1200 door is opened

Posted on December 30, 2019 at 9:54 am GMT

EURUSD is set to extend its October uptrend to fresh highs after registering a new higher low around the 1.1072 barrier, boosting optimism that the bullish pattern may have a continuation. The RSI and the MACD favor the positive sentiment too, as the indicators are sloping upwards in the bullish area. Still, the 1.1200 barrier, which is the 61.8% Fibonacci retracement of the 1.1411-1.0878 downleg, should leave the door open for the rally to stretch up to the 78.6% Fibonacci of 1.1297. [..]

Technical Analysis – Gold trades at overbought waters near 1,500 and key resistance

Posted on December 30, 2019 at 8:13 am GMT

Gold returned to the 1,500 territory after almost two months following the breach of the 1,490 barrier, which is the 23.6% Fibonacci of the 1,266-1,566 uptrend. The market is currently looking overbought as the RSI is flattening slightly above its 70 mark, the Stochastics are ready to complete a bearish cross above 80, and the price itself is trading around the upper Bollinger band. A downside correction could retest the 1,500 round-level, where any violation would shift attention back to [..]

Technical Analysis – AUDUSD extends winning streak but rally at risk of being overstretched

Posted on December 27, 2019 at 8:09 am GMT

AUDUSD surged to a 5-month high of 0.6954 on Friday as the pair looked set to post a seventh straight session of gains. However, although the technical indicators suggest there’s plenty of positive momentum remaining to sustain the rally, there are some signs that the pair is in danger of becoming overbought. The RSI continues to rise and has yet to enter the overbought region, indicating there’s scope for more gains in the near term. But the stochastics are already [..]

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.

How can we help?

Live Chat Terms

How to Access

Telegram Chat Terms

Technical Analysis