Technical Analysis

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Technical Analysis – US 500 index plummets to 3-week low after gap down

Posted on February 24, 2020 at 10:05 am GMT

The US 500 index (Cash) declined considerably today after the gap down, retreating beneath the 50-day simple moving average (SMA). The price completed a three-week low at 3,249 with the technical indicators moving south. The MACD is extending its bearish structure below the trigger line, while the RSI dropped in the negative territory, strengthening the negative momentum. In case of steeper declines, the market could meet immediate support at the 23.6% Fibonacci retracement level of the up leg from 2,729 [..]

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Technical Analysis – EURUSD bounces off 34-month low; nearby resistance may be more durable

Posted on February 24, 2020 at 8:19 am GMT

EURUSD finally found some footing around a 34-month low of 1.0777 last week following the heavy sell-off from the beginning of the month, with the price strengthening towards the 1.0800 territory on Friday. The rebound, however, has not convinced traders yet that it is long lasting as the price could not clear the 1.0862-1.0888 resistance area that kept the bulls under control last week. This is also where the 23.6% Fibonacci of the downleg from 1.1238 to 1.0777 is located. Technically, the pair [..]

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Technical Analysis – Gold at fresh 7-year high; strongly bullish on virus fears

Posted on February 24, 2020 at 7:40 am GMT

Gold surged to a fresh seven-year high earlier today, hitting the 1,679.65 level and continuing the sharp upside extension, posting a gap up. The market recorded four consecutive green days and opened the door for a long-term clear positive direction, following the penetration of the previous top of 1,612 on virus fears. From a technical viewpoint, the RSI indicator is holding in the overbought territory with strong momentum, and the MACD oscillator is heading north above trigger and zero lines. [..]

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Technical Analysis – CHI 50 index faces strong resistance at 50- and 100-day SMAs

Posted on February 21, 2020 at 11:14 am GMT

CHI 50 index is capped by the 50- and 100-day simple moving averages (SMAs) and the Ichimoku cloud after the upside recovery from the 12,528 support level. The short-term upside tendency is confirmed by the technical indicators. The MACD is extending its bullish move near the zero line, as it holds above its trigger line. Furthermore, the RSI is heading north in the positive area, while the red Tenkan-sen line is moving higher following the price action. Should the index [..]

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Technical Analysis – USDTRY at fresh 6-month high; positive outlook to stay in place

Posted on February 21, 2020 at 10:59 am GMT

USDTRY has been rising steadily since mid-January, surpassing its previous peak at 5.986 to print a fresh 6-month high slightly above the 6.00 mark on Friday. The upward direction in the MACD and the positive slope in the RSI, which keeps strengthening above its 70 overbought mark flag a bullish short-term bias. Hence, the focus will likely stay on the upside, with the 6.148 peak from May 23 probably coming next under the spotlight. If the bullish action continues above the latter, the [..]

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Technical Analysis – EURAUD hits fresh highs; some bullish action may be in store

Posted on February 21, 2020 at 8:29 am GMT

EURAUD gathered significant positive traction this week, breaking above its simple moving averages (SMAs) and the Ichimoku cloud on the four-hour chart. While the RSI is testing its 70 overbought mark again, increasing the odds for a downside correction, it has yet to reach a peak at a time when the MACD continues to strengthen above its red signal line, suggesting that there might be some extra bullish action in store. Trend indicators are also in a bullish mood as the 20-period [..]

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Technical Analysis – USDCAD remains above the supportive falling trend line; slightly bullish

Posted on February 21, 2020 at 7:31 am GMT

USDCAD has found strong support area near the penetrated descending trend line and the 38.2% Fibonacci retracement level of the bearish move from 1.3664 to 1.2950 around 1.3220. In the short-term, the outlook seems to turn slightly bullish after the jump towards the 1.3325 resistance and the momentum indicators are holding in bullish area. The stochastic oscillator completed a positive cross in the oversold zone, while the Relative Strength Index (RSI) is moving sideways after the bounce on the 50-neutral [..]

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Technical Analysis – GBPAUD hovers above 20-day SMA; still bullish

Posted on February 20, 2020 at 10:36 am GMT

GBPAUD is heading up following the rebound on the 20-day simple moving average (SMA) currently at 1.9347. The upside tendency is continuing since July 2019 with the technical indicators confirming the bullish structure. The RSI is pointing up, above the 50-neutral threshold, while the MACD is in the process to post a positive cross with the trigger line. If price action remains above the red Tenkan-sen line and the 20-day SMA, there is scope to test the three-and-a-half-month high of [..]

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Technical Analysis – Dollar index reactivates 2-year old uptrend in overbought zone

Posted on February 20, 2020 at 9:27 am GMT

The US dollar index futures cleared the tough ceiling around 99.30 and spiked to a 33-month high of 99.74 on Thursday, re-activating the two-year old upward pattern off 88.13. If the bulls manage to close decisively above the former resistance level of 99.60 from 2015, the next key obstacle is expected to pop up around 100.60. Since the RSI and the MACD have yet to show signs of weakness, the odds for such a case are currently looking high. If [..]

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Technical Analysis – GBPJPY eyes upper boundary of 2-month sideways market

Posted on February 20, 2020 at 8:27 am GMT

GBPJPY is currently improving off the 143.80 level, which is the 23.6% Fibonacci retracement of the up move from 130.42 to 147.95. The near completion of the bullish crossover of the 200-period simple moving average (SMA) by the 50-period one seems to have further aided in the very short-term incline from February 10 that bounced off the 38.2% Fibo of 141.24. Looking at the short-term oscillators, they suggest a pickup in positive sentiment. The MACD, in the positive zone, is [..]

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