Forex Weekly Forecast & FX Analysis November 15 - 19
EUR/USD
The Euro falls against the US dollar, continuing to reach some of its minimum price values. A downward movement is also shown by the indicators that are pointed down, updating their minimum values. This situation is especially visible on the oscillator, which has been developing in the oversold area for a long time. The histogram falls; however, it has not yet updated its minimum values compared to the previous month's trading. We are most likely witnessing the market at its bottom. The downward movement is still there; however, we are now too late to catch this momentum. It is recommended to consider bullish trading options only as a corrective movement; however, at the moment, this could be a risky trading strategy.
GBP/USD
The currency pair of the British pound against the US dollar continues to develop a local stage of the downward movement. So far, this stage has had two essential characteristics. First, the price has significantly moved away from its average values. Secondly, it is possible to trace divergences between the price chart and all the indicators. The price chart elements are moving downward, updating their minimum values. The indicator chart also shows development in the negative area; however, the upward slope can be clearly traced. Therefore, taking into account the totality of these factors, we can consider options for bullish trading towards the trendline area.
USD/JPY
The US dollar continues to develop an upward trend against the Japanese yen, despite the fact that the market is recovering from the strong growth of the previous month, mostly moving horizontally. Last week we saw a situation when the market falsely broke through the downward corridor, simultaneously breaking through the moving average level; however, it returned to neutral levels rather quickly. At the current stage, the lateral corridor with the margins at 113.460 and 114.222 is relevant again. You can wait for the moment when this range will leap upwards. As soon as the price consolidates outside this range, you can open a bullish contract. The downward movement is also possible. However, you need to wait until the price finds itself below this range and, simultaneously, below the moving averages.
AUD/USD
The currency pair of the Australian dollar against the US dollar develops a local stage of the downward movement. Consider that, at this stage, the price has managed to gain a foothold below the moving averages. The downward movement turned out to be quite strong, and, at the moment, all indicators confirm it. At the current price stage, the range with the borders of 0.7265 and 0.7327 is especially important. While the price is developing within this range, it is recommended to refrain from trading. It is better to wait and see in which direction the range will be broken to open a contract along the vector of the breakout.
USD/CAD
The value of the US dollar against the Canadian dollar bounced off the level of 1.2313, after which a local upward trend emerged. This trend is noteworthy because it has already managed to form an upward movement and gain a foothold above the moving averages. When talking about indicators, primary attention should be paid to the overbought oscillator. It is too late to open an upward contract since both the indicators and the price chart are at their local maximum. It is recommended to consider only options for a downward correction movement, which may signify a return to the main trend. However, such a contract should only be opened if the price falls below 1.2540.
USD/CHF
The currency pair of the US Dollar against the Swiss Franc is moving horizontally. However, it is possible to state that upward dynamics is somehow dominating, as a result of which the price is fixed above the level of the moving averages. Although all indicators have a superior slope, if you look at the moving averages, you will find that they are more likely to be directed downward. Taking into account the fact that all indicators are at their maximum values, while the price chart rests against a strong level, it is possible to consider options for bearish trading with the expectation that the price will return to its average indicators.
USD/RUB
The US dollar keeps on being traded in the area of moving averages against the Russian ruble. The trades of the last weeks allow us to determine an additional important level for this currency pair at around 71.31. Note that both the price chart and all indicators show a clear attempt to form a new uptrend. First of all, this movement is expressed in the repeated fixing of the price above the moving averages, accompanied by the indispensable growth of indicators. Given that we are now above the average indicators and above the key level, you can consider bullish trading options.
Gold
Last week, the price of gold rose very strongly, which was reflected in both the price chart and the indicator chart. All instruments have been developing at their maximum values for more than a few months. As for the price, it managed to rise above the strong level of 1856.164. We are at the top of the market, and it is too late for bullish trading. Moreover, the market has already slid far away from the moving averages, as a result of which it may need a correction. Therefore, you can consider bearish trading options as a corrective movement, with the expectation that the price will move towards the averages.
