Technical Analysis

Technical Analysis – USDJPY needs to hold above 20-day SMA to avoid extra losses

Posted on February 26, 2020 at 8:27 am GMT

USDJPY erased all the impressive gains that led to a 10-month high of 112.21 last week, closing negative for the third consecutive day on Tuesday and marginally above the 110.00 level. The 20-day simple moving average (SMA), which is also the middle Bollinger band, contained the bearish move and the pair is currently pushing efforts to keep its uptrend off the 104.44 bottom valid. Technically, the short-term trading could be neutral if the RSI and the MACD remain near their [..]

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Technical Analysis – NZDJPY set for more losses below range-bottom

Posted on February 25, 2020 at 12:49 pm GMT

NZDJPY is testing the bottom of the 71.22-69.90 range, which is likely to collapse as the RSI has restored negative momentum in the bearish area and the 20-day simple moving average (SMA) is heading for a bearish cross with the 200-day SMA. The 50% Fibonacci is also in the neighborhood making any violation of the barrier important for the sell-off to extend towards the 61.8% Fibonacci of 69.00, while lower, traders could also look for support around 68.50. In the [..]

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Technical Analysis – GER 30 index pauses sharp downfall near key support; may stay under pressure

Posted on February 25, 2020 at 10:38 am GMT

The German 30 stock index, having unlocked a fresh record high at 13,826 last week, plummeted below the Ichimoku cloud for the first time since August on Monday but the strong cluster of support around 12,950 managed to curb the sharp downfall once again. Technically, there is more downside in store in the near-term according to the RSI and the Stochastics which are fluctuating comfortably within the bearish zone but have yet to confirm oversold conditions. This increases the case [..]

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Technical Analysis – EURGBP finds wall near 20-SMA; retains neutral mode

Posted on February 25, 2020 at 9:26 am GMT

EURGBP is consolidating within a trading range over the last two months with an upper boundary at the 0.8590 resistance and the lower boundary at the 0.8275 support level. Currently, the pair is capped by the 20-day simple moving average (SMA) and the blue Kijun-sen line. The technical indicators are moving with weak momentum within the bearish territory; the MACD has risen marginally above its trigger line, while the RSI is still flattening slightly below 50 area. If the price retreats, it could find support at [..]

Technical Analysis – GBPUSD squeezed by descending channel

Posted on February 25, 2020 at 8:24 am GMT

GBPUSD printed another lower low at 1.2848 on Thursday, making the case for a down-trending market more real. Also, the pair seems to be trading within a downward-sloping channel that has been keeping the market action under control since the start of the month, while the bearish cross between the 20- and 50-day simple moving averages (SMAs) is another negative trend signal for the market. Should the channel keep rejecting upside corrections, Thursday’s low of 1.2848, which is near the [..]

Technical Analysis – WTI futures could see more gains after posting 2-week low

Posted on February 25, 2020 at 7:43 am GMT

WTI oil futures is creating positive 4-hour sessions after the bounce off the three-month rising trend line and the 50.41 significant support level. The commodity today has advanced to the nearby Ichimoku cloud’s upper band around the 23.6% Fibonacci retracement level of the bearish movement from 59.62 to 49.29 at 51.74. The short-term oscillators suggest an increase in positive momentum for now. The RSI indicator is approaching the bullish region, while the %K line of the stochastic oscillator entered the [..]

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Technical Analysis – UK 100 index slumps below long-term supportive trendline

Posted on February 24, 2020 at 2:03 pm GMT

The UK 100 stock index slumped below the supportive trendline that has been holding since the end of 2018, increasing concerns that the market may be changing direction to south. The downside reversal in the RSI, which is currently heading towards its 30 oversold mark, is a negative signal that the bearish action may get new legs in the short-term. Yet, a confirmation could only come below the 50% Fibonacci of 7,132 of the 6,535 – 7,728 up leg. If such an incident materializes, the [..]

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Technical Analysis – GBPAUD abandons 3-week top; bulls still in charge in long-term

Posted on February 24, 2020 at 1:39 pm GMT

GBPAUD is recording a negative day, recovering the gap up that created earlier today. The price completed a three-week peak of 1.9646. Chances for a downside reversal, however, are minimal as the 20-day simple moving average (SMA) remains above the 40-day SMA for more than a month now, while the red Tenkan-sen line has a steeper positive slope now, suggesting that the next move in the price is more likely to be up. In more evidence, the MACD continues to strengthen to [..]

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Technical Analysis – JP 225 index collapses to 4-month low; 200-SMA acts as support

Posted on February 24, 2020 at 10:33 am GMT

Japan’s 225 stock index (cash) collapsed on Monday as the coronavirus cases outside China increased, shifting funds towards safe havens. The index dived straight to the 200-day simple moving average (SMA) to 4-month lows, losing nearly 4.0% From Friday’s closure. Should the 200-day SMA, which currently stands around the 61.8% Fibonacci of the 21,054-24,162 upleg, prove an easy obstacle, the market could experience additional losses probably towards the 21,863 barrier as the falling RSI suggests. Lower, the next stop could be near 21,480. Otherwise, an upside reversal [..]

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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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