Forex Weekly Forecast & FX Analysis January 25 - 29

EUR/CHF

If we consider the peculiarities of trading the euro against the Swiss franc last week, we can note one general pattern, which applies both to the price chart and to the elements of indicators. The point is that the trades were accompanied by an unambiguous upward movement, and the slope of this movement is approximately the same for both the price and indicators. Therefore, we can talk about the strength of the upward dynamics, which allows us to consider options for trading upward.

NZD/USD

The downtrend line, which began its formation at the top of the market near the level of 0.7300, was broken up last week and the market is showing an attempt to consolidate above this level. It is characteristic that this movement also coincides with the fact that the price is simultaneously trying to gain a foothold above the level of the moving averages. All indicators have previously reached their local minimum values ​​and are now looking up. Taken together, all this allows us to say that there is every reason for conducting an upward trade, since one can expect that both the trend line and the level of moving averages are broken upwards, which means that upward dynamics will again dominate.

EUR/RUB

Trades in the euro against the Russian ruble mostly developed throughout the week in neutral positions, but Thursday and Friday led to a strong and very directed upward movement. At the same time, the histogram entered the positive area for the first time in a long time, and the oscillator even went up into the overbought area. There are no more specific signals for trading, but it is important to note that the price is again within the sideways range of 89.84 and 9170. The level of moving averages passes approximately in the middle of this channel, so we expect that the price will test this level again, and then continue again upward movement.

AUD/CHF

The Australian dollar against the Swiss franc is still developing in the upward movement, however, we have all the prerequisites to expect the end of this movement or at least its transitions to the sideways stage. First of all, it is important to note that trades in recent weeks allow for an additional level of 0.6909. The level is very significant and very important, because twice upon reaching it, the price bounced down, and did it very strongly. At the same time, the indicators look in different directions, but do not give any specific signals. The price itself dropped below the trend line. Taking into account that the price is close to the level of moving averages, we can expect that a reversal should occur and the price will go up again.

GBP/CAD

For more than a month, this currency pair has been trading within a fairly wide sideways range with the borders of 17177 and 1.74. 50. As part of the trades last week, it is very important to note the dynamics of the histogram change. Please note that the indicator forms Columns with practically no body, and which are actually pressed to the zero level. Thus, we state the fact of almost complete absence of trend dynamics in the movement. Therefore, we can expect that the price development will again occur within the indicated sideways range.

NZD/CHF

For the New Zealand dollar against the Swiss franc as a whole, the dominance of the upward dynamics can be traced. This can be clearly seen both in the price chart, where there are trend lines, and in the indicators that look up. Please note that the price has been developing above the level of moving averages for a long time, which enhances the significance of the trend. We also pay attention to the fact that quite recently the market again dropped to the level of moving averages, after which there was a reversal and an upward movement. The trades of the last hours have again lowered the price to the level of the moving averages, which means that due to the combination of factors, we can expect that there will be a new upward movement.

USD/CNH

The past week of trading the dollar against the Chinese yuan led to what we talked about in the previous weekly review: gains that were capped once the price reached the moving average level. As a result, an uptrend line is drawn from the local minimum of the price chart. An additional line is drawn at the level of the correction on the moving averages, and these two trend lines converge, forming a graphical figure, and the price is close to the top of this figure. As long as the chart pattern is relevant, you cannot trade. As soon as the price is outside this figure, a contract can be executed in the direction of the breakout. A downward movement is most likely, and an upward contract should be opened especially carefully, since in general a global downtrend prevails for this currency pair.