Forex Weekly Forecast & FX Analysis October 25 - 29
EUR/USD
Last week, the Euro demonstrated a strong upward movement against the US dollar, going above the trendline. It is essential to take into account that, in terms of the upward movement, the Euro price reached the level of the moving averages and stopped the growth at this point. If you look at the indicators, you will see that they have been pointed up for quite some time, forming upward movements. Taking into account the position of the price, we can expect that the downward dynamics, which dominate in this currency pair, will continue, meaning that a downward contract can be opened.
GBP/USD
The British pound moved upward against the US dollar. Its movement ended around the strong level of 1.3850. At the same time, the oscillator entered the overbought area, while the histogram reached a maximum value for more than a few months. Note that in its current position, the price is squeezed within the boundaries between 1.3750 and 1.3850. As long as the price stays within this range, it is not recommended for you to trade. It is better to wait to see in which direction the range will be broken and open a contract along the breakdown vector.
USD/JPY
The US dollar continues to develop the stage of upward movement against the Japanese yen. However, last week, we could observe a horizontal correction. If you look at the indicators, you will find that they are clearly pointed down, while the histogram is at the minimum values in the negative area. Nevertheless, now, we need to focus on the highly important 113,740 level. As long as the price is above this level while simultaneously being close to it, you can consider options for upwards bullish trading (moreover, in this case, it is better to open a deal immediately). If this level is broken downwards, it will be possible for you to consider downward bearish trading as an option.
AUD/USD
The Australian dollar is forming an upward movement against the US dollar. These dynamics have currently stopped at the strong level of 0.7500. Note that this level and an uptrend line form a triangle, with the market close to its top. The upward trend is confirmed by all instruments; however, since we are currently at the top of the triangle, trading is not recommended as an option. It is better to wait to see in which direction the triangle will be broken and open a contract along that vector.
USD/CAD
The US dollar continues to lose ground against the Canadian dollar. Nevertheless, if we compare the price chart and indicators, we can trace a clear divergence, which has been forming for a long time. The price chart continues to fall, renewing its lows, while the indicators are pointing up. It should also be added that the market has moved far down from its neutral values at the level of moving averages. Thus, we can expect a corrective upward movement at the regional level of 1.2441.
USD/CHF
Last week, the USD/CHF currency pair demonstrated a downward dynamic. The market is moving down, having already found itself below the moving averages and several levels. If we compare the price with the indicators, we can see an implicit divergence manifested in the fact that the price falls, while the indicators either rise slightly or move horizontally. Thus, taking into account this combination of factors, we can consider options for bullish trading since the upward movement, which currently characterizes this currency pair, has not yet lost its strength.
USD/RUB
The US dollar continues its downward movement against the Russian ruble. For several weeks in a row, this currency pair has been updating its minimum values. It is very important to note that as a result of the downward movement, the price is distancing from its strong levels and, even more importantly, from the moving averages. At the same time, if you consider the operations of the last week, you can clearly trace the divergence between the price and all indicators. The indicators are already looking up, having changed their slope to an upward one. Thus, for the coming week, you can consider bullish trading as an option to apply to this currency pair.
Gold
The price of gold continues to form a local upward trend. Together with the level of 1795.834, it forms a triangle. Note that the market is close to the top of this figure. Usually, when this happens, it is best not to trade. Among all indicators, we recommend you to pay attention to the oscillator, which also confirms the fact that trading is currently undesirable, developing close to neutral values. Besides, you may look at the moving averages, which are trying to change the slope on an uptrend for the first time in a while, attempting to form an upward movement. Therefore, it is recommended to wait to see in which direction the triangle will be broken through and open a contract along this vector. An upward movement is most likely to occur.
