Forex Weekly Forecast & FX Analysis May 17 - 21
EUR/USD
An uptrend dominates in the euro against the dollar, which is expected to continue to influence next week. In the framework of the current market situation, we can only say that the price first rose to the important level 1.2165, after which it made a rather strong downward movement. As part of the downward movement, the level of moving averages was reached, where the market corrected again. Taking into account that the price jumped up from the moving averages and already turned out to be above the level of 1.2083, we can expect that the upward movement will continue, which means we open an upward contract.
GBP/USD
The triangle pattern, which we talked about in the previous weekly review, was worked out by the market in the direction of growth, after which there was a fairly strong upward movement, ending at the level of 1.4150. Having reached this level, the price went down. At the market high, the indicators reached their maximum values for more than a month. In general, we can say that since the triangle is broken upwards, an upward trend has been formed. This dynamics is confirmed by all indicators. Therefore, we can open a contract for an increase.
USD/JPY
The US dollar is still trading with elements of low volatility against the Japanese yen, although there were several candlesticks with a very large body last week. In general, we can say that the indicators show an upward movement, and the price itself is above the moving averages, and that it is very important that it is trading above the level of 109,200. Therefore, there is every reason to believe that the upward trend is still strong, which means that you can trade up.
AUD/USD
The past week led to a fairly strong correctional movement downward of the Australian dollar against the US dollar. This move ended around the strong 0.7683 level. Indicators do not give signals for trading, since they are close to neutral values and do not generate any dynamics. In the current situation, it is important to note that the global trend is still upward and there is every reason to trade up. Nevertheless, we take into account that the price is still below the moving averages and the market as a whole has reduced its volatility. If, as part of the upward movement, the price turns out to be above the moving averages, then it will be possible to open a contract.
USD/CAD
The market continues to recover after the strong fall of the US dollar against the Canadian dollar. Within the framework of the last week, the decline slightly decreased and even passed into the stage of correction. At the current stage, it is very important to note the significance of the 1.2180 level. The level is very strong and the price approached it last week, but could not break it. Moreover, a candlestick with a short body and a long upward shadow is formed on the chart. Thus, given the dominance of the downtrend and the presence of a candle of uncertainty, you can trade a decline.
USD/CHF
For the dollar against the Swiss franc, a situation continues to form where the market price contradicts the indicators' readings. If the indicators mostly look up, then the price goes down and the downtrend is very clearly traced. Last week the market was below the level of 0.9061. This level is very significant. Taking into account the fact that the price managed to gain a foothold below it, the downward movement can be expected to continue.
USD/RUB
The value of the US dollar against the Russian ruble during the last trading week was mainly going down. The downward movement can be clearly traced on the price chart, which can be used to build a trend line. At the same time, if we compare the price movement with the positions of indicators, primarily the histogram, then divergence can be traced. The market approached the 73.32 level several times, but could not break it. This level is very significant and since it was not broken, and also taking into account the presence of divergence, we can consider options for trading up. However, an upward contract can be opened only when the price is above the trend line.
Gold
Gold continues to trade positively and upward dynamics can be traced for all analytical instruments. This dynamics is especially well visible on the oscillator. If we look at the price chart, we can notice that an upward trend line is being traced, and the price itself is plotted above the moving average. As part of the trading of recent weeks, the level of 1840.420 can be distinguished. For the current price, this level is critically important, and until the price turns out to be higher than it, it is impossible to trade for an increase. As for the downward trade, it will be possible only if the market consolidates below the level of 1824.610.
