Question

Please complete a technical analysis for the currency of your choise. In your analysis, please include the following tools: MACD (chart and what does it mean) RSI (chart and what does it mean) 50 and 200 days moving averages (chart and what do they mean)

Answer 1

The currency pair is EUR/USD

The daily chart for the past 1 year is shown below :

The chart with RSI is shown below :

The chart with MACD is shown below :

The chart with Moving averages is shown below :

From the technical charts, it can be seen that :

• The RSI is around mid-range at a value of 44.15
• The MACD lines are intersecting at the current date
• The 50-day moving average line is below the 200-day moving average line

From these indicators, it means that :

• The EUR/USD currency pair is neither overbought nor oversold as per the RSI indicator (this is because the RSI is not above 80 or below 20)
• The EUR/USD currency pair is bearish for the medium term because the blue MACD line is below the orange line
• The EUR/USD currency pair is bearish for the medium term because the 50-day moving average line is below the 200-day moving average line

Overall, it can be concluded with technical analysis that the EUR/USD currency rate can be expected to decline over the short to medium based on the above technical indicators