Forex Weekly Forecast & FX Analysis August 31-September 4
EUR/CHF
For the euro against the Swiss franc, we have been talking about the same situation for more than a month: the price develops exclusively within the range of 1.7014 and 1.0800. Indicators and price do not show volatility and tend to insignificant side movements. Therefore, we can say that globally we expect the market to gain a foothold above or below the designated corridor, but we work locally only in this corridor. Moreover, we proceed from the fact that the market is attracted to the level of moving averages, so our trade will also be in the direction of the level of moving averages.
NZD/USD
For this currency pair we observe a market situation when the price tries to change the downtrend to an upward one. First of all, we note the fact that the market has managed to rise above the level of moving averages and above the trend line for the first time in a long time. And it wasn't just an uptrend, but a consolidation. This fixation led to the fact that the oscillators are already in the overbought area, and the histogram at the maximum values of growth in more than 2 months. Thus we have all the prerequisites for upward trading, but take into account that we are already at very high positions, which means that we expect a correction initially and then an upward movement.
EUR/RUB
An upward movement from the level of 87.81, which we discussed in the previous week's review, is justified for this currency pair. The movement coincides with all the indicators and remains relevant for the coming week. The upward trend coincides with the trend line and with the position of moving averages, which allows us to consider only options for trading upwards.
AUD/CHF
For a long time we talked about price development within the range of 0.6501 and 0.6585. Last week has led us to consider a situation where the market is fixed above the designated corridor and allows us to trade upwards. Indeed, the price has risen above the range, but upward movement is sluggish and leaves long shadows in both directions. The histogram is already at its maximum and the oscillator is in the overbought area. Thus, we can expect an upward trend, but for a more confident upward trade we have to wait for the correction and testing of 0.6585 level.
GBP/CAD
For the British pound against the Canadian dollar, we continue to talk about what we talked about the previous week. There are all the prerequisites for upward trading, as the downward trend changes into an upward one. An upward trend is perfectly visible for indicators that are looking up, but are still close to neutral or negative values. The price itself is still below or close to the level of moving averages, which makes upward trade ahead of it.
NZD/CHF
The New Zealand dollar vs. the Swiss franc is the next currency pair in our weekly review, which has the potential to change trends. These conditions are formed near the level of 0.6037. This level is as close to the level of moving averages as possible, and this is the first time in a long time that the market is attempting to break through this level upwards, in parallel securing itself above the moving averages. Interestingly, the oscillators for the first time in more than 2 months have made 2 consecutive attempts to consolidate in an area above 60, which is a very strong signal. If you look at the histogram, it also showed strong growth and is at its maximum in more than 2 months. Thus, if the market manages to consolidate above this level, we trade up. If it does not get fixed, it will be possible to trade down, but only when the price falls below the level of moving averages.
USD/CNH
The dollar against the Chinese yuan is developing within the boundaries of the downtrend. Despite the downward trend, indicators are still showing weak volatility and lack of strong dynamics. However, the main trend is very clear and based on the postulates of chemical analysis, we can only consider trading options in the direction of the main trend, and thus, downwards. However, we are at the lowest market value in more than 2 months, which means that we are already late to follow the trend and trade downwards. The only way to trade down is to wait for the trend line to be tested again and trade down from it. Another option is if the price manages to stay above the trend line, then you can trade up until the level of moving averages is reached.
