Forex Weekly Forecast & FX Analysis November 1 - 5
EUR/USD
Over the past week, the Euro moved up against the US dollar, finding itself above the moving averages and several significant price levels. Thus, we can state that a new trend is attempting to form. However, you should pay attention to the presence of divergence between the price and all indicators, as the market is growing, while the indicators are pointed down. Thus, we can expect that the market will need a correction, due to which it is recommended to open a contract downwards, in the direction of the current movement. In the future, you should wait to see in which direction the strong levels will be broken and start trading along the vector of this breakdown.
GBP/USD
The British pound is developing a stage of an upward movement against the US dollar. However, the trades of the recent weeks have generally been developing horizontally. Nevertheless, if you look at the indicators, you will clearly see that they are mostly built in the positive area, which confirms the upward trend. The moving averages that are pointed up also confirm the presence of such a dynamic. Therefore, given that the price is next to a strong level, you can consider options for bullish trading up to the point from which the correction began during the previous maximum.
USD/JPY
The US dollar continues to stabilize the market situation against the Japanese yen after the strong growth of the previous weeks. Based on the performance of the last few weeks, we can state that the market is mainly moving horizontally around the 113.740 level as a means of stabilization. If we consider the local trades of the last week, we can see a strong convergence of prices with moving averages accompanied by a downward movement in all indicators. This can be most clearly seen on the histogram, which has dipped to minimum values in more than a few months. Thus, we can presume that the upward dynamics has not lost its strength, while the market has carried out a correction. Therefore, it is possible to consider bullish trading.
AUD/USD
The most important characteristic of this currency pair with regard to the primary analysis is manifested in the presence of divergence between the price and indicators that are directed downward. Nevertheless, you should pay attention to the ways in which the construction of indicators is conducted. They confirm the complete absence of volatility. Therefore, divergence allows you to consider bearish trading options, while the fact that there is no volatility makes trading risky and uncertain at this very moment. In many cases, after such a narrowing of the market, a strong surge occurs, which can be aimed in any direction.
USD/CAD
The currency pair of the US dollar and the Canadian dollar continues to move horizontally within the price channel with the boundaries of 1.2313 and 1.2441. Note that the indicators are pointing up, mostly being placed in the positive territory. Thus, we can say that the market situation has practically stabilized, especially if we consider that the market approached the moving averages and normalized even in this respect. Since the global trend continues to be downward, you may consider bearish trading options. The optimal entry point will be close to the moving averages.
USD/CHF
The past week has led to a downward movement in the currency pair of the US dollar against the Swiss franc. This movement stopped at the upper level of 0.9116. At the same time, the oscillator found itself in the oversold area. However, if you look at the price and the histogram, you can clearly see the divergence, as the histogram grows without forming minimum points. Therefore, there are all the prerequisites to open a bullish contract.
USD/RUB
The currency pair of the US dollar against the Russian ruble continues to develop the stage of the downward movement. However, last week's trades turned out to be highly volatile and multidirectional. The downward movement can be traced across all analytical instruments; however, for the first time in a while, the histogram has already moved into positive territory. The level of 70.82 is crucial for the current market segment. As long as the price is below this level, we can only consider bearish trading options. If the market manages to gain a foothold above the designated level, you can open bullish contracts. In the best case scenario, an upward contract should also be opened at the time when the moving averages will be broken through.
Gold
The price of gold locally develops an upward trend, which is clearly seen based both on the price chart and the indicators. In the current section of the market, you should pay particular attention to the level of 1795.834. The market is close to this level, which fact, together with the main trend movement, allows us to consider bullish trading options.
