Forex Weekly Forecast & FX Analysis July 27- August 1

Technical analysis of the Forex market for the coming week July 27-31. Let us study the main opportunities to trade the most common underlying assets.

EUR/USD

As we said in the previous week's review, the price strengthening above 1.1347 led to an upward trend. This trend is now clearly visible, and in its development stage the price reached its local maximum in more than 3 months. All the indicators are also testing the local maximum, but now we should also say that the price has already moved very far up from the level of moving averages. Therefore, you can expect the price to return to the trend line, and then watch how this line will be worked out by the market. It is possible to trade in the direction of working out.

GBP/USD

Last week's trading pushed the British pound against the U.S. dollar into the 1.2667 and 1.2769 corridors. This corridor can be clearly traced by the indicators, which are close to the neutral values. It is the most typical part of the histogram. Considering that within the specified range the price develops classically, and the current market stage is close to the upper level, a downward movement can be expected. However, if the market manages to hold on above the designated corridor, then it is possible to form an uptrend and upward trade accordingly.

USD/JPY

The dollar vs. the Japanese yen is characterized by a very interesting market stage, when there are all preconditions for the formation of a visual downtrend. First of all, we note the fact that the price has fallen below 106.710 for the first time in a long time. It says that the movement has already formed prematurely, as the market has already tested such a level, but after that there was a return upwards. This assumption is also reinforced by the fact that the histogram is still unable to update its local lows. The oscillator has reached the oversold area. Therefore, for the current stage we can expect an upward correction movement back to the level, but if the indicators show the trend, we can trade down to a longer position.

AUD/USD

Last week allowed trading Australian dollar against American dollar for the first time in a long time. The market strengthened above 0.7020 and made a progressive upward movement. This movement caused the indicators to rise to local highs, and this is especially evident in the oscillator, which for a long time is in the area above 70, i.e. in the overbought area. Considering that last month's trading, or even more, was accompanied by low volatility and tendency to flute, we can expect a downward correction movement.

USD/CAD

Over the past week, trading on the designated currency pair has formed a situation where the market managed to break through the level of 1.3516 and go further down from it. This movement was actually completed by reaching another important level of 1.3334. It is important to note that approximately in the area of reaching this level there were 2 important events. First, the oscillator is already looking up and actually talking about divergence. Secondly, although the histogram updates the minimum, it makes it less dynamic and shows gaps in the red areas. Thus, we can expect that reaching the level was the limit of the current downward movement, and thus we can trade up.

USD/CHF

The dollar has slipped very hard against the Swiss franc. As a result, we can draw a downtrend line, which has a very strong slope. Characteristically, if we look at the histogram, the local minimum formed as a result of this movement does not coincide with the local minimum for 2 months. In this case, if we consider the price chart, this minimum is confirmed. At least, it makes you think about the ambiguity of the downward movement. As a maximum, we are talking about a long divergence. Another important characteristic of the market is that the oscillator has been in the oversold area for a long time. Thus, we can expect that this downward movement has turned out to be excessive and an upward correction will be required.

USD/RUB

The main hypothesis for the upcoming trading week on the dollar against the Russian ruble is the histogram. It shows that the current market segment is characterized by the absence of trend and low volatility. The absence of a trend allows us to draw a sideways corridor with the boundaries of 70.50 from 72.00. An upward trend can be traced globally for the currency pair, and it has not lost its relevance so far. We can also see that the market is close to the upper range line. Thus, we can expect how the price will react to reaching the upper line. It is most likely that it will take a downward turn, but we can also expect the price to consolidate above the range. If the indicators show trend trends, it will be possible to work upwards.

Gold

Gold managed to consolidate above the level of 1814.928, after which there was a strong upward impulse movement to the level of 1892.783. The dynamic turned out to be very strong, and it can be most clearly seen on the histogram, which reached its maximum in 3 months. However, if you look at the oscillator, it is already looking down in the overbought area and indicating the presence of divergence, albeit weak. The second important point is that the price has moved very far away from the moving averages, and the gold hasn't been showing strong long-term trends lately. Thus, a downward correction can be expected.