Weekly forex technical forecast December 23 - 27

Technical analysis of the currency market Forex for the coming week, December 23-27. Let us consider the main trading opportunities on the key currency pairs. The coming week is not expected to be a short one for trading, as the market is preparing for the holidays, while in Catholic countries Christmas is celebrated.

EUR/USD


The price movement of this currency pair can be clearly seen along the trend lines. Firstly, an upward trend dominated the asset, then a downward trend. Characteristically, these 2 lines, in conjunction with the support and resistance levels allow the triangle, which forms 2 trend lines and the level of 1.1111. Indicators in this case are in neutral position or close to them. It allows to speak that while the price is inside this triangle it is impossible to trade. We are waiting in which direction the market will continue moving. There are two variants of developments. If the triangle is broken down, we can trade to the level of 1.1062. If the break-down occurs upwards, we can trade up to the level of 1.1171.

Weekly forex technical forecast December 23 - 27
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GBP/USD


The high volatility and spike of previous weeks ended, the market made a smoother but no less strong jump down. Within the surge of volatility we can mark a new level 1.3121. During the period of the surge, this level was tested at least 6 times, and each time it led to a market reaction. This level in combination with the level 1.2975 allows you to draw a sideways corridor that frames the current price. Characteristically, the price also coincides with the level of moving averages. Despite all positions of the indicators, we can say that as long as the price is inside the sideways corridor, it is impossible to trade. We wait in which direction the market will break through the corridor and it will be possible to trade in the direction of breakage.

Weekly forex technical forecast December 23 - 27
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USD/JPY


This currency pair undergoes a transformation period according to technical analysis, as a result of which one sideways corridor changes for another one. Now we can talk about the importance of the sideways corridor with the borders of 109,630 and 109,200. If we look at the technical indicators, all of them are looking down. Characteristically, this movement caused the market to test the level of 109,200, after which it turned around and went up. With this in mind, we can say that the sideways corridor once again confirmed its importance, which means that we can consider trading options to rise to the level of 109.630.

Weekly forex technical forecast December 23 - 27

AUD/USD


The Australian dollar against the American dollar is one of the most unpredictable currency pairs for analysis for the coming week. We can definitely say that all the indicators are close to the neutral position. At the same time, if you consider the histogram, it still tries to form upward trend attempts that do not contradict the price position. We see four consecutive growth columns, each of which dominates the previous one. At the same time, the price is also rising. If you look at the price, you can see a pattern that the market bounced down from 0.6932 and bounced up from 0.6860. All these factors allow to consider variants of trade on rise, but such work will be risky.

Weekly forex technical forecast December 23 - 27

USD/CAD


After a long period of movement within the sideways corridor, the dollar against the Canadian dollar has formed a clearly descending trend. Within this trend, the market broke down 3 important for itself levels. On the one hand, we can say that the market has formed a clear downtrend, which means that we need to trade down. On the other hand, all indicators show that the current fall, with all its impulse elements, is an anomalous and accompanied by divergence. Moreover, if we consider the trend line downwards, the market is once again close to it. If the currency pair can consolidate above this line, then we can expect the divergence to work out, and thus we can trade on the rise.

Weekly forex technical forecast December 23 - 27

USD/CHF


Last week the dollar against the Swiss franc fell below 0.9803, but it did not lead to a clear impulse movement in any direction. Moreover, the market bounced up and came close to this level again. If we consider descending movement, it is accompanied by divergence. The currency pair does not give any specific signals for trading. The only thing we can say is that the level 0.9803 is very significant and we can consider options for trading in the direction in which the market will continue its movement from this level. The upward movement is most likely.

Weekly forex technical forecast December 23 - 27
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USD/RUB


The dollar continues its fall against the Russian ruble. In the previous review we talked about the level of 62.58, but the market managed to consolidate significantly below it. A sideways range can be drawn around this level, which is significant and which was also broken down by the market. All the indicators are at the minimum values and all the indicators show the clear dominance of the downtrend. However, we continue to take into account the fact that the market has moved very far away from the level of moving averages and is in a falling phase for a very long time. Taking into account the fact that this fall is quite strong and impulse, we can expect correction. That is why I am considering the variants of price rebound up to the level of 62,393, after which we can go back to descending trade.

Weekly forex technical forecast December 23 - 27
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Gold


For gold, an upward trend, which is framed by its two lines, remains relevant. We discussed it in detail in the previous week's review, while the reality of the current market is that the price is framed by a fairly narrow sideways corridor with boundaries of 1473.06 and 1479.98. This sideways corridor is absolutely confirmed by all the indicators that are close to neutral values and do not show any obvious ups and downs. All these are signs that as long as the price is inside the designated corridor, it is impossible to trade. If the market fixes above the corridor, you can trade up to 1488.83. If fixation occurs down from the corridor, it will be possible to trade down, but only to the level of moving averages.

Weekly forex technical forecast December 23 - 27
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