Forex Weekly Forecast & FX Analysis November 8 - 12
EUR/USD
The downtrend continues to dominate the EUR/USD currency pair globally. However, trading operations of the recent weeks have been characterized by the development of a horizontal movement. If we consider the last week, the trades are multidirectional and characterized by elements of high volatility. As a result of these patterns, the price of the currency pair turned out to be below the moving averages and below the price range that we talked about in the previous weekly review. At the moment, it is possible to state that the price is at the local low of the market, which is why now is not the best time to trade. It is recommended to consider only bullish trading options. However, these contracts can be closed only when the trend changes, namely at the moment when the price finds itself above the moving averages and above the level of 1.1619.
GBP/USD
The currency pair of the British Pound against the US dollar made a rather strong downward movement. As a result, it turned out to be below the moving averages and below several significant price levels at once. The most important factor that should be taken into account is the fact that, at the current stage, the market has reached the level of 1.3482 and slowed down. At the same time, the oscillator found itself in the oversold area, while the histogram repeated its lowest indicators in more than two months. Therefore, we can assume that here and now, we are at a local low of the market, which means that it is possible to open a bullish contract, relying on an element of correction.
USD/JPY
The USD / JPY currency pair continues to develop an upward trend. However, if we consider the trades of the last month, we can see that they are actually developing within the price range with the boundaries of 113.460 and 114.220. Note that the oscillator does not actually move away from the level of 50, and the histogram is pointed up, which confirms the absence of a clear trend here and now. Taking into account the fact that at the current stage, USD/JPY is at the lower border of the channel, which actually coincides with the moving averages, you can consider options for bullish trading. If the level of 113.460 is broken down and the price consolidates below the moving averages, it will be possible to consider the option of opening a bearish contract.
AUD/USD
Last week, the currency pair of the Australian Dollar against the US Dollar moved down, having found itself below the level of 0.7500 and reaching the level of the moving averages. Pay attention to the positions of the indicators. The oscillator is at its minimum values, testing the oversold area. The histogram also moves down, testing its minimum values. Based on the price chart, the only thing that we can state here and now is a significant upward movement. We can assume that the market will return from the moving averages to its typical indicators, which means the possibility of opening a bullish trade.
USD/CAD
As a result of the past week's trading operations, the currency pair of the US dollar against the Canadian Dollar made an attempt to leave the price range discussed in the previous weekly review. An attempt was also made to form a new trend. Pay attention to the strength of the upward dynamics. It is primarily visible on the histogram, which is growing and gradually updating its indicators to maximum points in a long time. As for the price chart itself, it is very important to note that the price has risen above the level of 1.2441 and the moving averages. Therefore, we can consider options for bullish trading. If this movement is not confirmed and the price gets below the designated level, it would be recommended to open a bearish contract.
USD/CHF
The US dollar is globally developing a downward movement against the Swiss franc. However, if you look at the local movements on the price chart, you can notice the elements of the upward movement as a correction. Pay attention to the fact that prices are close to the level of 0.9116. This level is very significant, and the price reacts to it in a substantial way. The indicators are pointed up, having actually entered the positive area. Therefore, we can expect that the corrective movement is still valid. As a result, there is every reason to open a bullish position.
USD/RUB
Last week, the US dollar made a rather strong upward movement against the Russian ruble. Pay attention to the price chart, particularly the way the upward movement reacted to the level of moving averages. Initially, this level was reached in terms of resistance, after which it was broken upwards. Further, a downward rollback took place, followed by a repetitive testing of this level and a subsequent upward movement. At the same time, the histogram rose to its maximum values in more than a month. In turn, the oscillator continues to rise. It has even tested the overbought area. Consequently, all models point out that the moving averages are being tested. There is an element of development in which a trend reversal is possible. Therefore, we can open a bullish contract with a local target at 73.00.
Gold
The price of gold continues to develop upward dynamics. This trend is indicated not only by the price chart but also by the moving averages, which have already formed their upward slope. Note that the downward movement of the past week turned out to be quite strong, encountering resistance at the level of the moving averages, simultaneously with the moment when the oscillator found itself in the oversold area. The market reacted to these processes with a rather sharp growth. The current stage is characterized by the fact that the price has already consolidated above the level of 1790.830. Consequently, the upward dynamics have not lost their strength, which means that you can consider options for bullish trading.
