Technical Analysis

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Technical Analysis – US 30 index jumps above 200-day SMA; enters key resistance zone

Posted on June 5, 2020 at 1:16 pm GMT

The US 30 stock index (cash) ticked above the 200-day simple moving average (SMA) and is ready to test the 26,580-27,000 resistance zone. The battle could be challenging as the RSI and the stochastics point to an overbought market, suggesting that the rally could soon lose steam. If the bulls are unable to remove the 27,000 ceiling, letting the price slip back below the 200-day SMA, the red Tenkan-sen line near the 25,770 barrier could take over. However, what could [..]

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Technical Analysis – GBPUSD spikes above 1.2600 but returns some gains

Posted on June 5, 2020 at 11:07 am GMT

GBPUSD spiked towards a three-month high of 1.2705 but it finished the session below the 1.2645 barrier on Thursday. The upside rally which started after the rebound on the 1.2075 support could take a breather in the near term as the momentum indicators are suggesting a pullback. The RSI is edging south below the 70 level, while the MACD is holding beneath its red trigger line. A declining move could find immediate support at the flat red Tenkan-sen line around 1.2590 and the 20-period simple moving average (SMA) at [..]

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Technical Analysis – GBPAUD bears take a breather at the bottom of a tight channel

Posted on June 5, 2020 at 11:06 am GMT

GBPAUD strengthened its negative momentum within a narrow descending channel and touched a 1½-year low at 1.8053 this week after tumbling below the 1.8500 mark. With the price currently consolidating near the bottom of the channel, and the RSI and the stochastics fluctuating in oversold zone, an upturn is increasingly likely in the near term. Yet, that may depend on how strong the 1.8050 support is. If it fails to reject downside movements, the market could find new sellers to drove [..]

Technical Analysis – EURUSD shines at summer highs after ECB presses the stimulus button

Posted on June 5, 2020 at 7:36 am GMT

EURUSD extended Thursday’s rocket rally to a fresh three-month high of 1.1376 after the ECB pushed the stimulus button more strongly than expected and is now set to claim its third consecutive weekly gain. In the short run, the bulls could remain in charge, but it seems that there are a few key obstacles which they need to clear first to confirm another smooth winning race. Particularly, they should close comfortably above the 200 simple moving average (SMA) at 1.1335 [..]

Technical Analysis – USDCAD challenges 3-month low; finds some footing at 200-day SMA

Posted on June 5, 2020 at 7:12 am GMT

USDCAD is trading around the vicinity of 1.3440 – 1.3515, being the bullish gap from March 6. The pair plunged to a three-month low of 1.3467 on Thursday’s session, hitting the flat 200-day simple moving average (SMA). The technical indicators are standing in oversold territories in the short-term. The MACD is still falling below its trigger and zero lines, while the RSI and the stochastic are flattening, suggesting a weak bearish momentum. If sellers continue to have control and drive [..]

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Technical Analysis – EURCAD range bound; plots some gains

Posted on June 4, 2020 at 3:04 pm GMT

EURCAD today found footing on the 1.5127 level, that being the 50.0% Fibonacci retracement of the up leg from the 34-month low of 1.4263 to the 2-year high of 1.5991. Despite the fact that positive momentum is increasing, the pair remains confined within a sideways market from 1.5052 to 1.5532, something also reflected in the simple moving averages (SMAs). The MACD is increasing above its red signal line and has moved above zero, while the RSI is rising towards the [..]

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Technical Analysis – EURJPY’s upward trajectory under negative strain

Posted on June 4, 2020 at 1:53 pm GMT

EURJPY’s one-month positive incline is stalling ahead of the key 122.86 resistance border. Although positive momentum appears to be waning, the ascent from the 3½-year low remains intact, something also reflected by the upward slopes within the simple moving averages (SMAs). The short-term oscillators appear to be holding on to their positive tone, though slipping slightly. The MACD, deep in the positive region, has slipped below its red signal line but looks to move back above it, while the RSI [..]

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Technical Analysis – USDCHF retests 3-month trough; neutral in near term

Posted on June 4, 2020 at 1:35 pm GMT

USDCHF faced a sharp selling interest over the last few hours, flirting with the 0.9590 support level. This move is suggesting more losses, confirmed by the RSI, which is heading south below the 50 leveld. Moreover, the red Tenkan-sen line fell beneath the blue Kijun-sen line and the price is holding well below the 20- and 40-period simple moving averages (SMAs). Yet, the stochastic is hovering in the oversold, signaling that any weakness could be short-lived. Stronger downside pressures could [..]

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Technical Analysis – GER 30 index detects overbought signals near 3-month high

Posted on June 4, 2020 at 1:26 pm GMT

The German 30 stock index (cash) finished Wednesday’s session at three-month highs and comfortably above the 200-day simple moving average (SMA) following the close above the 12,000-round level. While the aforementioned notable move foresees the extension of the two-month old uptrend, the market needs first to overcome the 12,600 mark which is currently blocking the way up. Note that the momentum indicators are already located in overbought territory – the RSI above 70 and the Stochastics above 80, hence a downside [..]

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Technical Analysis – EURUSD pulls back from 3-month top

Posted on June 4, 2020 at 10:59 am GMT

EURUSD is edging lower over the last four-hour sessions following the bounce off the three-month peak of 1.1256. The technical indicators are weakening in the positive areas. The MACD is slipping beneath the trigger line, while the RSI failed to hold above the 70 level and is approaching the neutral threshold of 50. Further declines could find immediate support at the 20-period simple moving average (SMA) currently at 1.1180, which holds slightly above the 1.1153 and the 23.6% Fibonacci retracement [..]

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