Forex Weekly Forecast & FX Analysis October 11 - 15
EUR/USD
The Euro continues to lose its position against the US dollar. Within the last week, the price of this currency pair consolidated below the level of 1.1570. One of the crucial characteristics of the underlying asset’s current position is the presence of divergence between the price and the indicators. If you look at the price chart, you can distinctly see that the market continues to move downward, updating the minimum values on a continuous basis. Pay attention to the indicators. You can notice that they are demonstrating a distinct growing pattern. Considering that the price has moved away from the moving averages to a significant extent, we can expect a corrective upward movement.
GBP/USD
The British pound has shown a rather strong upward movement against the US dollar, getting above the level of the downtrend line. A local trend line can be drawn along an upward movement. It is very important to note that the upward movement ended around the strong level of 1.3606. The market tried to consolidate above this level twice, but each time these efforts led to the stagnation of the movement. Therefore, we can state that the downtrend has not lost its strength, which means that you need to consider bearish trading as an option. A deal can be entered when the price is below the local trendline, while the trade target is at 1.3482
USD/JPY
The US Dollar and Japanese Yen currency pair continues to recover after the abnormal growth through which it went in the previous weeks. Meanwhile, the upward dynamics have not lost their strength. This fact is primarily visible on the price chart, where the horizontal movement can be clearly traced during an uptrend. This movement is limited by the strong level of 111.960. Pay attention to the indicators. All of them are looking down, indicating atypical divergence since the market moves horizontally, while indicators are directed downward. As for the histogram, it gets pushed to zero values, which is one of the uncertainty elements. Therefore, you may try to consider bearish trading options. An upward contract is possible only if a strong level is broken through by an upward movement and the price consolidates above it.
AUD/USD
The currency pair of the Australian dollar and the US dollar is undergoing a reversal of horizontal movement with the elements of low volatility. The lack of volatility is primarily demonstrated by the indicators that are placed close to their neutral values. This fact is also demonstrated by the oscillator, which cannot move far away from the level of 50. Also, if you look at the price chart, it is important to note that the market is very close to the moving averages, being squeezed inside the range with the boundaries of 0.7265 and 0.7327. As long as the price stays within this range, it is not recommended for you to trade. It is better to wait and see in which direction the range will be broken to open a contract in the direction of the breakout.
USD/CAD
The US dollar is developing a local stage of downward movement against the Canadian dollar. This movement can be traced from the price chart and the indicators. Note that this movement has already led to the establishment of the 1.2540 level. Usually, the market reacts to this level very strongly. In this case, we can state that we are at the point of the local minimum. Therefore, we have every reason to consider bullish trading options, at least in the area of the 1.2622 level.
USD/CHF
The US dollar continues to develop upward dynamics against the Swiss franc. These dynamics can be indicated by all analytical instruments. However, if you look at the oscillator, you can see that it barely drops below 40. The price continues to rise, reaching above many levels. Most importantly, it holds above the moving average level. Pay attention to the fact that the price has tested the moving average level twice in the past week. However, each time these situations led to a fairly strong reaction in the form of upward bouncing. Therefore, the upward trend has not yet lost its dynamics and strength, which means that we can consider options for bullish trading.
USD/RUB
The past week led to a fairly strong downward movement of the US dollar against the Russian ruble. As a result, the price fell below 71.95. The movement has also brought the oscillator to the oversold zone, making it renew its lows for the first time in more than a month. The histogram is falling; however, it does not form minimum values. Even though the downward trend characterizes this currency pair, we can consider the bullish trading options as a corrective movement.
Gold
Last week, the price of gold made a corrective upward movement, reaching the strong level of 1766.215. Pay attention to the fact that all indicators are close to their neutral values, showing that there is no clear trend here and now. Thus, they confirm the correction. Taking into account the level formed above the price, you can consider options for bearish trading up to the level of 1734.521. This is the trading that develops in the direction of the main trend within the boundaries of the price channel, which has been formed within the last two months. With regard to an upward contract, such a transaction will be possible only if the price gets above the level of the moving averages.
