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USDZAR extends rally to 7-month high but looking overbought

Melina Deltas Analysis

USDZAR hit a near 7-month high of 13.9095 today as the pair stretches an uptrend that began in late February. Momentum indicators are all in positive territory, pointing to a continuation of the strong bullish bias in the near term. However, the RSI has crossed into overbought levels, suggesting a downside correction could be due soon. If prices continue to …

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DAX loses momentum after creating double top

Melina Deltas Analysis

The Germany 30 stock index has plunged today after the significant bounce on the double top level near the 13200 barrier. The sharp sell-off has driven the price towards the 50- and 200-simple moving average (SMA) in the medium-term, which are expected to post a bullish crossover in the next few sessions if the price recoups the losses. Looking at …

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Gold trades near 6-month low; confirms medium-term bearish structure

Melina Deltas Analysis

Gold prices plummeted more than 1.7% on Friday, reaching a fresh six-month low of 1275.30 after the bounce off the 1303 resistance level. The neutral bias shifted to bearish as the price penetrated the trading range 1289 – 1307.50 to the downside, experiencing further losses. Despite the latest upside pullback, the bearish picture in the short-term is further supported by …

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McDonalds stock erases rally; could weaken further in short term

Melina Deltas Analysis

McDonald’s stock price has been making higher highs and higher lows since the end of February, creating an upward tilting channel. In the short-term, prices moved lower after the pullback on the four-month high of 171.60. The technical indicators, though, continue to send neutral to bearish signals, suggesting that the softness in the market is not over yet. The RSI …

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GBPJPY retreats sharply; maintains short-term bearish bias

Melina Deltas Analysis

GBPJPY plunged below the 38.2% Fibonacci retracement level of the downleg from 153.80 to 143.20, around 147.25, which overlaps with the 40-simple moving average in the 4-hour chart. The aggressive bearish rally started during yesterday’s session and has shifted the near-term bias from positive to negative. Also, the momentum indicators are supportive of the bearish picture. In the short-term, the …

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Aussie eyes employment report before RBA minutes next week

Melina Deltas Analysis

Australia’s employment report for May is likely to attract investors’ attention and is scheduled for release on Thursday at 0130 GMT. The unemployment rate is forecasted to tick lower to 5.5% for the month of May from 5.6% in the preceding month, while the employment change is expected to show that the economy added 18,000 jobs, 4,600 jobs less than …

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EURJPY remains neutral above 38.2% Fibonacci level

Melina Deltas Analysis

EURJPY has struggled above the 38.2% Fibonacci retracement level of the downleg from 137.50 to 124.60, around 129.50 and below the 130.30 resistance level since Tuesday’s trading session. The sharp buying interest, especially in the previous week, has shifted the near-term bias from negative to positive as the price is in the process for a bullish correction. The RSI is …

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UK 100 index turns neutral in short term after bearish correction

Melina Deltas Analysis

UK 100 index is looking more neutral as prices have struggled below the 7770 key resistance level and also touched a couple of times the 23.6% Fibonacci retracement level of 7633 of the upleg from 6760 to 7905, in the previous days. Hence, the upside momentum appears to be running out of steam as the short-term technical indicators are moving …

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EURCAD extends gains in near term; holds in upward sloping channel

Melina Deltas Analysis

EURCAD moved higher so far on Monday and jumped above the 20- and 40-simple moving averages (SMAs) in the 4-hour chart. The pair has been consolidating within an upward sloping channel since May 30 and is in progress to turn the medium-term outlook from negative to positive. From the technical point of view, the RSI indicator is sloping upwards in …

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Gold maintains short-term neutral bias; weak movement over last 3 weeks

Melina Deltas Analysis

Gold remains under pressure as it has been consolidating within a trading range over the last three weeks with upper boundary the 1307.50 resistance level and lower boundary the 1289 support barrier. The short-term technical indicators are bearish and point to more weakness in the market. Looking at the 4-hour chart, gold prices are looking capped by the 20-simple moving …