Forex Weekly Forecast & FX October 19-23

EUR/CHF

For this currency pair, the scenario with the breakdown of the downward trend line worked last week. As a result, there was a strong downward movement, which turned out to be quite impulsive and lowered the price below the level of 1.0714. Now we can state the fact that all indicators and the price are at their local minimum, and the oscillators are in the oversold area. Nevertheless, there are prerequisites to consider options for trading up, since this currency pair tends to sideways movement and sideways dynamics, as well as movement close to the level of moving averages. Therefore, we consider trading up as a priority, but we only trade when the price is above the last trend line and the designated level.

NZD/USD

This currency pair is going through the second stage of the upward movement. The current stage of correction is interesting because the price is already on the trend line, as well as at the level of 0.6585. If you look at the indicators, they are in neutral positions and do not indicate the presence of a trend or dynamics. Therefore, there are all prerequisites for considering the possibility of trading up. However, given that the deals will be short-lived, since there is a tendency for corrective movements, which means sooner or later the last trend line will be broken down.

EUR/RUB

For the euro against the Russian ruble, what we talked about in the previous review continues to be relevant. The asset is still developing inside the triangle and the price is close to its top. As long as the market is inside the triangle, no indicators can be considered and, in general, you cannot trade. We are waiting in which direction the market will break through this figure and in the direction of this movement, you can open trading contracts. An upward movement is most likely, since even last week there were several attempts to consolidate above the triangle at once, but they did not lead to the formation of a movement.

AUD/CHF

The Australian dollar continues to dominate the downtrend against the Swiss franc. Last week, the movement became even stronger, as the market made a strong downward movement, within which it managed to fall below the 0.6502 level. Downward dynamics can be traced across all indicators, but if you look at the histogram, then its local minimums are not as large as the previous values, which confirms the possibility of continuing the downward dynamics. Therefore, we are considering options for trading down. An alternative scenario will arise if the price manages to gain a foothold above the designated level. Then it will be possible to trade bullish with a target on the trend line, or at the level of moving averages.

GBP/CAD

The development of the price of this currency pair occurs near the level of the moving averages. For several weeks in a row, we have noted that the market cannot significantly move away from its averages. Moreover, if you look at the indicators, they are also close to their neutral values ​​or zero indicators. Consequently, the main idea of ​​trading for the coming week will be that there are no prerequisites for a change in the general trend, which means that the price will develop close to the moving averages. Opportunities for upward dynamics remain, therefore, initially, upward contracts can be considered with a subsequent downward correction.

NZD/CHF

The New Zealand dollar against the Swiss franc is trading in a market environment where there is no clear trend movement. The main trading takes place near the level of 0.6030. Last week the market again approached the indicated level from above, which here and now makes it possible to consider options for upward trading with a target at the level of moving averages.

USD/CNH

The dollar against the Chinese yuan is still trading in a downtrend and cannot rise above 6.7473. Even from the histogram, we can see a section of the market where an attempt was made to grow, but it ended quickly. Last week trading began with a strong upward gap, which was almost completely closed during the weekly trading. A gap often indicates the direction of movement within a global trend. Therefore, once again we say that there are prerequisites for trading upward in this currency pair. The optimal entry point will be at the point where the price gap will be completely closed.