Technical Analysis

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Technical Analysis – NZDUSD breaks above 0.7400; bullish bias in place but overbought

Posted on July 21, 2017 at 8:45 am GMT

NZDUSD has extended its uptrend, breaking above the key level of 0.7400 and reaching a fresh ten-month high. Meanwhile, the short-term bias remains bullish but is likely to weaken. Looking at the technical indicators, the bias in the near-term is expected to be bullish. The pair has already crossed above the Ichimoku cloud, the 50-day and the 200-day exponential moving averages, which are currently positively sloping. However, the bias is likely to become weaker, as the bullish cross between the Tenkan-sen and [..]

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Technical Analysis – USDCHF bearish; challenges yesterday’s 14½-month low

Posted on July 21, 2017 at 7:05 am GMT

USDCHF recorded a fourteen-and-a-half-month low of 0.9492 during yesterday’s trading. Today the pair has been edging lower and currently trades in proximity to yesterday’s low. The bias is clearly tilted to the downside – the MACD is negative as well as below the red signal line, while RSI is well into bearish territory at 32 and keeps heading lower. Notice that RSI is close to oversold levels. If the price reverses course, resistance could be met around 0.96, a potential [..]

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Technical Analysis – USDMXN close to 14½-month low; down more than 15% since the start of the year

Posted on July 20, 2017 at 2:34 pm GMT

USDMXN has declined by 15.3% since the start of the year. Yesterday was only the second in ten preceding trading days that the pair managed to finish the day higher. Additionally, the pair recorded a fourteen-and-a-half-month low of 17.4460 during yesterday’s trading. In terms of the Ichimoku analysis, the Tenkan-sen line (red) crossing below the Kijun-sen (blue) is projecting a bearish picture for the pair. Adding to the conviction for a bearish bias is the steeply downward sloping Tenkan-sen, as [..]

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Technical Analysis – USDCAD near 14½-month low; records bearish cross

Posted on July 20, 2017 at 7:11 am GMT

USDCAD has retreated considerably since reaching 1.3793 – the seventeen-month high from May 5th. Yesterday the pair recorded a fourteen-and-a-half-month low of 1.2578. Turning to the Ichimoku analysis, the negative alignment when the Tenkan-sen line (red) crossed below the Kijun-sen (blue) in late May remains in effect, suggesting a bearish market bias. Regarding the RSI, it is in oversold territory at 24 and currently maintains a moderately positive slope (i.e. it is heading higher). This might hint that momentum in [..]

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Technical Analysis – US 30 index close to all-time high; remains bullish in the medium-term

Posted on July 19, 2017 at 12:03 pm GMT

The US 30 index reached an all-time high of 21,681.30 during Friday’s trading. It has been declining so far this week but remains close to the all-time high level. The MACD indicator is positive and above the red signal line, suggesting a bullish bias in place. Despite this, the momentum in the very short-term seems to be negative as indicated by the stochastics. Specifically, the %K line is heading lower after crossing below the slow %D line. Should the index [..]

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Technical Analysis- Dollar index trades within descending channel; bearish and oversold

Posted on July 19, 2017 at 8:21 am GMT

The dollar index has stretched below the 95.00 key-level, extending its downleg that started on January 3, when it touched a multi-year high of 103.81. Looking at the technical indicators, the index is likely to remain bearish but there is a possibility of an upside reversal in the near-term horizon. The RSI has been hovering in bearish territory since March 14 and attempted to break above 50 three times since then but struggled to hold above it. Currently, the indicator is showing that the index is oversold as it [..]

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Technical Analysis – USDJPY intra-day neutral; records bearish cross

Posted on July 19, 2017 at 7:25 am GMT

USDJPY hit a three-week low of 111.68 during yesterday’s trading. The pair experienced significant declines since reaching a four-month high of 114.49 on July 11. The RSI is currently at 46, close to the 50 neutral-perceived level. In addition, the indicator has flatlined, projecting neither a positive, nor a negative intra-day direction. On the upside, the area around the 38.2% Fibonacci retracement level (June 14 – July 11 upleg) at 112.30 could provide resistance. Further up, the 113 handle, combined [..]

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Technical Analysis- AUDUSD overbought above 0.7900 key-level; correction to the downside expected

Posted on July 18, 2017 at 1:33 pm GMT

AUDUSD has shot higher, breaking the 0.7900 key level and recording a fresh two-year high. However, the odds of a trend reversal are increasing in the short-term, as the pair is currently in under overbought conditions. On a four-hour chart, the bias is bullish, as the Tenkan-Sen and the Kinjun-sen are positively sloping after the former crossed above the latter on July 10. Meanwhile, the MACD has turned from negative to positive and managed to rise above its signal line. Nevertheless, the [..]

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Technical Analysis – GBPUSD bullish; eyes 10-month high

Posted on July 18, 2017 at 7:07 am GMT

GBPUSD closed higher in the preceding three out of four trading days. During Friday’s trading, it advanced by a hefty 1.3%, reaching a ten-month high of 1.3113 along the way. Technical indicators including the MACD and RSI are painting a bullish picture for the pair. In particular, the MACD is positive as well as above the red signal line. The RSI indicator is in bullish territory at 64 and keeps heading higher, indicating the existence of positive momentum in the [..]

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Technical Analysis – Japan 225 index records 10-day low; remains bullish in the medium-term

Posted on July 17, 2017 at 1:37 pm GMT

The Japan 225 index has declined in the three previous trading days. In today’s trading, it recorded a ten-day low of 19,980. Despite this fall in recent days, the index has been in large part moving sideways over the last number of weeks. The stochastics are pointing to negative momentum over the short-term. Specifically, the %K line is edging further down into bearish territory, while it crossed below the slow %D line. If the index rises, the area around the [..]

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