Forex Weekly Forecast & FX Analysis July 20-26
Technical analysis of the Forex market for the upcoming week July 20-24. Within this review we will consider opportunities for practical trading of key assets of the currency market. The week promises to be difficult, as most assets demonstrate neutral dynamics.
EUR/USD
The euro continues to rise against the American dollar. Last week led to the strengthening of the currency pair above 1.1347. Characteristically, the oscillators also show the upward trend, and the histogram, despite the growth, does not show a clear trend. In total, these factors allow to speak about ambiguity and local weakness of upward movement, which means that the market may need correction. We are still considering upward trading options, and the optimal entry point will be close to the level of 1,1347.
GBP/USD
Upward dynamics characterize the local market segment. At the same time, we can say that the current trend is not strong and is at a minimum. This is mostly confirmed by indicators that are close to neutral values and negative values. It is also important to note that the market is still above the level of moving averages, but the moving averages themselves change their slope and start looking up. Therefore, according to the basic laws of technical analysis, we consider options for upward trade.
USD/JPY
The dollar against the Japanese yen is traded in the side range with the borders 175.380 and 106.710. The price movement is characteristic, which is a classic example of movement inside the corridor. The price consistently tests the upper level and the lower one. Indicators confirm the sideways trend, as there are no trends and are close to neutral values. Taking into account that the market has recently tested the upper level, which almost coincides with the moving averages, a downward movement can be expected. If we consider variants of upward trade, such trade can be carried out only if the price is fixed above the level of 107,500.
AUD/USD
The Australian dollar against the American dollar is traded within the side corridor with the borders of 0.6933 and 0.7020. The sideways corridor is also confirmed by the indicators, which literally stuck to the neutral values. This can be traced especially clearly by the histogram, which does not make any progressive upward or downward movements. Therefore, we can talk about the strength of the sideways trend, but it will be possible to consider trading options only if the price goes beyond the corridor. It will be possible to trade in the direction of price exit and fixation.
USD/CAD
The US dollar against the Canadian dollar, as well as the previous asset, is characterized by a sideways movement and absence of a clear trend. In this case, we are talking about the significance of the level 1.3517. Recently, the price has been testing this level many times and bounced off it every time. At the same time, this level has shown its importance as both support and resistance. Indicators on neutral values and do not give any specific signals. Considering the sideways corridor and the fact that the price has reached the level of moving averages, we can consider options of moving down to the designated level. It is not recommended to open long positions on the asset yet.
USD/CHF
Last week's trading led to the fact that the dollar price against the Swiss franc rose again and drove itself into the side corridor 0.9427 and 0.9480. It is very important to note that the price has literally stuck to the level of moving averages, and the levels themselves have changed their slope to an upward or at least neutral. All indicators have reached a local maximum, which together with previous factors indicates a stage of uncertainty. Therefore, we do not trade within the corridor as long as the price. As soon as we exit, we can trade in the direction of this movement.
USD/RUB
The dollar keeps growing against the Russian ruble. An important characteristic of the current market stage is that the indicators are looking down, but we can expect that this movement has already ended. Such a hypothesis allows us to consider a histogram, which has slightly sunk into the negative area, but is already on the zero line and ready to move to the growth stage. At the same time, despite the downward movement, the price of the asset did not sink much. Therefore, as long as the price is above the trend line, we consider options for upward trade.
Gold
Gold continues to develop an upward trend stage. What we talked about last week is still valid, but it should be added that last week's trading resulted in the price of the precious metal being driven into a sideways corridor with the boundaries of 1792.455 and 1814.928. This corridor should be considered a level of correction that is undefined and therefore does not allow trading. We wait in which direction this corridor will be broken through.
