Forex Weekly Forecast & FX Analysis November 29 - December 3
EUR/USD
The Euro continues to decline against the US dollar. Last week, the price of the currency almost reached a strong level of 1.1171. If you look at the price and the position of the indicators, it is possible to trace the divergence since the price continues to update the minimum values. Meanwhile, you can see that the indicators are directed upwards. It should also be noted that the price has already moved very far from its average value. Therefore, there is reason to believe that the current divergence will be worked out by the market. As a consequence, opening a bullish contract can be viewed as a valid option.
GBP/USD
The British pound continues to develop the stage of the downward movement against the US dollar. The current trend is still local; however, it has been forming for more than a month already. A key characteristic of the current movement is the presence of a long-term divergence, within which the price falls while the indicators are pointed up. It is equally important to note that the price has reached a strong level of 1.3304. Taking into account the combination of these factors, it is possible to expect that the market will make an upward movement. Therefore, you can consider entering a bullish contract as an option. However, keep in mind that we are working against the trend.
USD/JPY
The US dollar continues to develop a stage of an upward movement against the Japanese yen. The past week has first led to considerable growth, then to a strong and sharp downward movement. As a result of this movement, the price found itself in the moving average area around the strong level of 114.222. The sharp drop does not change the fact that the uptrend is dominant. In the current market situation, we can only consider bullish trading options. However, keep in mind that the contract can only be opened if the price rises above the previously indicated level.
AUD/USD
The Australian dollar continues to fall versus the US dollar. Within the last week, the price of the currency reached the level of 0.7110. At the same time, the oscillator sank into the oversold area to the point of 20 for the first time in a very long period. If you compare the price movement with the histogram, you can trace the divergence, albeit an implicit one. Therefore, given that the price has moved far from the moving averages and reached a significant level, it is possible to expect a corrective upward movement. Trading in these conditions is risky because we are moving against the market.
USD/CAD
The US dollar continues to develop an uptrend against the Canadian dollar. As a result of recent week's trades, the slope of the trend line has become steeper, while the price has found itself above the level of 1.2070. We are now at the top of the market while the indicators are pointing down. Note that the uptrend is strong enough; however, as it changed the slope and became steeper, the market may need to correct, especially given the distance between the trend and the averages. Therefore, you can consider bearish trading in the area of trend lines around the level of 1.2700.
USD/CHF
The currency pair of the US dollar versus the Swiss franc is developing an upward movement. If you compare the price chart and indicators, you can clearly see the presence of a divergence. However, it is already too late to use it in trading since the divergence has been worked out. Three candles with a clear downward movement formed in the market in a row, as a result of which the price has gotten to a point around the strong level of 0.9030. The uptrend is still dominant; however, as long as the price is below the indicated level, it is not recommended to trade. It is better to wait until the market consolidates above the price level, after which you can open a contract.
USD/RUB
The US dollar is growing against the Russian ruble. As a result of last week's trades, the price turned out to be even higher than the significant level of 75.50. An uptrend can be clearly seen both on the price chart and on indicators. At the current stage, it is already too late for bullish trading, as the upward movement has already formed, and we are at the top of the market. The only thing that you can do in the current situation is to look for points of corrective downward movement since the market will inevitably be drawn to the trend line and moving averages. Therefore, you can consider bearish trading options, but only if you are working against the market.
Gold
The past week has led to a fairly strong downward movement in the value of gold. As a result of this movement, the price of this precious metal turned out to be below the moving averages, stopping the fall around the level of 1795.835. As a result of this situation, an additional trend line was drawn, confirming the upward trend but, at the same time, passing below the average. The current price stage is located within the range with the boundaries of 1790.835 and 1824.612. Presumably, the price will move within the indicated range. Therefore, you can trade from level to level.
