Forex Weekly Forecast & FX Analysis December 13 -17
EUR/USD
The Euro continues to slowly recover the previously lost positions against the US dollar. Last week the currency made another move upwards and reached moving averages and a strong level of 1.1347. This level has been tested three times in the last few weeks and each time this has led to a marked reaction. This only confirms the strength of the level. We can say that the key range for the current currency pair is between 1.1280 and 1.1347. While the price is within this range, don't trade. Let's wait for a breakdown and open a contract in the same direction.
GBP/USD
The British pound continues to develop a downward stage against the US dollar. The past week resulted in the continued price decline, but the indicators show a lack of volatility. This is especially obvious from the histogram, which has literally stuck to zero values and cannot break away from them. However, the market is at its bottom, so it is too late to trade down. Given the lack of volatility in the indicators and the overall price chart position, we can consider a corrective upward move towards the strong 1.3304 level.
USD/JPY
The past week has led to an upward movement of the US dollar against the Japanese yen. As a result, the price reached the moving averages, but after that, the volatility declined. The uptrend is also confirmed by the indicators, which are looking upwards and have entered positive territory. Given that the price cannot break through the moving averages and that the overall slope is still negative, we can consider trading down, but only when the price falls below 113.460. If the price grows and the market manages to consolidate above 114.222, then it will be possible to trade bullish.
AUD/USD
The American dollar made a fairly strong move up against the Australian dollar last week, which took the price from 0.7020 to 0.7190. Moreover, the move was unidirectional with hardly any retracement candles. But, what is most important, the price ended above the trend line. All indicators also rose and reached their local highs. The oscillator has tested the overbought area. Nevertheless, the overall trend is still downward. The market has reached the moving averages and now has the potential to fall again. We can open a contract if the price drops below the 0.7110 level.
USD/CAD
As for the US Dollar against the Canadian Dollar, the uptrend continues to prevail, but in the past week, the price has dropped quite strongly. In fact, exactly what we said in the previous week's review happened. As a result of the strong move down, the price reached the moving averages and the level of 1.2622 at once. At the same point, the indicators tested their minimum values for more than a few months and the oscillator slipped into oversold territory. The market could not consolidate below the moving averages and bounced upwards. Consequently, the uptrend has been confirmed, which means that it is possible to trade up.
USD/CHF
This currency pair is stagnating, although there is a slight uptick. Perhaps the key characteristic for the current state of the market is that the price has managed to consolidate above 0.9218, but was unable to escape the moving averages. The moving averages are looking up. And so do all indicators. So despite the general lack of trending movement, we can expect the continuation of the upward movement, which means we can trade up towards the strong level of 0.9300.
USD/RUB
In recent weeks, a downward corrective movement prevailed for the Dollar against the Russian ruble pair, with the price tending towards the moving averages. If you look at the indicators, they are all in negative territory and have an upward slope. The most important feature on the price chart is that the price has approached the moving averages and once again tested the strong level of 73.32. Thus, we can expect that we are at the bottom of a corrective movement and there are all the prerequisites to trade bullish. Ideally, we should wait for the last downtrend line to be broken upwards to open a trade.
Gold
For the current stage of the gold price development, it is very important to highlight the lateral corridor with the boundaries of 1766.215 and 1795.835. The price is developing within this range and is moving from level to level. Indicators are looking up, but do not give any specific trading signals. We therefore consider the price position and note that since we are very close to the lower border of the price channel, we can trade up towards the upper border of the channel. This is a local trade. Globally, we should wait in which direction the price channel will be broken and trade respectively.
