Forex Weekly Forecast & FX Analysis December 23 - 27
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EUR/USD
The euro vs. the dollar continues to show signs of downtrend development. Under current conditions we see a prevailing downtrend line, as well as the presence of a local upward trend at the correction stage, which the market has overcome. If we consider the MACD histogram, we can see that it cannot show new highs and at the same time it is on neutral values. Taking into account that the price has preliminarily tested the level of the moving average twice and bounced off it, further downward movement can be expected
GBP/USD
The downward movement that started at 1.3222 has ended. The market shows signs of an upward movement: there is a trend line, there is a price fixation above the moving average. Taking into account the position of technical analysis indicators, we can expect the asset to grow. In this case, you should trade only if the market fixes above the level of 1.3100. After fixing the price above the designated level, you can trade on the rise, where the next strong level will be at 1.3222.
USD/JPY
For the dollar vs. the yen, development within a framework of very low volatility remains relevant. At the same time, an upward corridor can be distinguished. The development of this corridor is interesting because last week the price developed within a very narrow sideways movement with the boundaries of 110,500 and 110,900. At the same time, the indicators are on neutral values, not giving signals for trading. It is impossible to work in what conditions. You should wait in which direction the market will break through the specified levels. It is possible to trade in the breakout direction.
AUD/USD
The graphical analysis allows for an upward corridor for this underlying asset. This corridor was broken through down, but still closed the week at the lower boundary. At the same time, the indicators are in zero values, not giving an opportunity to trade. It is noteworthy that price closing within the lower line of the uptrend coincides with the level of the moving average - these are signs that indicate the current uncertainty. It is necessary to wait in which direction the market will work out the lower limit of the upward channel. If it returns to the boundaries of the channel having risen above the moving average, we trade for the rise. If the market continues to move downwards, then we trade on the downwards.
USD/CAD
One of the most controversial assets for technical analysis over the coming week. Indicators do not give unambiguous signals, and among the global trends, typical for the dollar against the Canadian, we can highlight the presence of an upward trend, which has been developing since September 2017, and has repeatedly proved its strength. At the same time, the local movement is characterized by a downward trend. Taking into account the fact that the market has established itself below the moving average, having tested it beforehand, one can expect further decline. The optimal point for buying will be at 1.3200. In this case, the figure shows a kind of triangle of two trend lines, where the lower line is an upward trend since September 2017. The movement will develop within this triangle. Its breakthrough may lead to the formation of a new global trend.
USD/CHF
The dollar against the Swiss franc continues to develop within the upturn channel. The last growth area ended, forming a downward correction level. Characteristically, this movement ended up with the price literally sticking to the moving average, which indicates uncertainty. It will be possible to trade upwards only if the price is fixed above the current descending trend line. However, if the market closes below 0.9981, it is necessary to trade downwards.
USD/RUB
The dollar continues to fall in price against the Russian ruble, however, if we consider the latest price trend against the RSI indicator, we can find a divergence indicating further growth. At the same time, the MACD is at its lowest values since the beginning of 2015, i.e. since the end of the previous strong downward wave. This is a much stronger signal to work downwards. This signal is amplified by the fact that the price is below the global trend line and below the moving average. That is why we consider trading on the downside, but preliminary we expect the dollar to grow slightly.
