The euro against the dollar is still oscillating up and down. Last week is characterized by the fact that the euro has fallen significantly in price against the dollar, which is confirmed by all indicators. If you look at the histogram, it is at its lowest values for more than 2 months, although you cannot say the same about the price. Moreover, if we consider the downward price movement at the last candlesticks, we can see the obvious divergence with the oscillator. Taking into account these factors, we can consider options for trading on the rise. However, we take into account the fact that if the price moves upwards, it should pass through a strong level of 1.1115.
Despite the price spread on the currency pair, there is a clear downward trend from the top at 1.3500. At the same time, the sideways corridor, which we talked about earlier, with the boundaries of 1.2974 and 1.3121, is still relevant. Taking into account the fact that the price has only recently fallen into the boundaries of this sideways corridor, and the prevailing downtrend is still relevant, we can consider options for trading downwards. An alternative scenario is a movement within a designated sideways corridor from the upper level to the lower level and back.
The dollar against the Japanese yen shows high volatility. Recently, we mentioned that the price has collapsed pretty badly, and now we are already witnessing a strong growth. Within this growth, the market has risen to a strong level of 109.630. This level has been worked out at least 6 times on the history for the last time, and each time after that the market moved down. If we consider the indicators, then a strong growth has moved them, and all the indicators are on the maximum values for themselves in more than 2 months. The oscillators are in the overbought zone. All these are signs that for the coming week we can consider trading down to the level of 109.196. If the market manages to consolidate above the level of 109.630, it may be possible to form a new trend.
Despite the high volatility, the Australian dollar against the American dollar last week fell to the level of moving averages and formed a fairly narrow sideways corridor with the boundaries of 0.6848 and 0.6886. At the same time, if we consider the positions of the indicators, all of them are at their minimum values, but all of them show signs of growth. The oscillator looks upwards, while the histogram stops updating the minimum values and grows. Absolutely, we can say that while the price is within the bounds of the sideways corridor, it is impossible to trade. Once the corridor is broken through, it is possible to trade in the direction of the break-up. It is most likely that the movement will start upwards, and then it will be possible to trade to the level of 0.6933.
The dollar vs. the Canadian dollar worked out a narrow sideways corridor last week, which we talked about in the previous week's review, and really started moving upwards after that. At the same time, we can say that the downtrend line has been overcome. This is confirmed by the indicators, each of which is at the stage of growth, and each of which is at its maximum values for more than 3 months. It is very characteristic that it is also peculiar to the oscillator, and such an anomaly is connected with the fact that the market has been falling long enough, and now it will need either correction or an insignificant growth stage to win back the lost positions. Therefore, taking into account the fact that all criteria show that there is an initial point of an uptrend, we can consider the variants of upward trade, however, this trade is risky.
The price development of this currency pair in recent weeks allows for an additional level of 0.9750. The level is quite strong, and every time it is reached the market bounced down. Characteristically, this level is also confirmed by a similar level on the oscillator. It should also be noted that this level together with the formed uptrend line allows drawing a "triangle" figure. The market is very close to the top of the triangle, so as long as the price is inside this figure can not trade. As soon as the market breaks the pattern up or down in the direction of this movement, it will be possible to trade. If a break-down happens, which is the most probable from the point of view of technical analysis, it is important to take into account that there is a strong level of 0.97157 below.
Traditionally, at the beginning of recent years, the dollar is losing its position against the Russian ruble in January. 2020 is no exception - the dollar keeps falling. Last week we talked about a sideways corridor, and it was formed and broken down by the market. Now we can say that the price has literally frozen at 61.325. The indicators do not give any signals for trading, so we can only use the fact that the level is usually very strong, which means that the market may need to correct to the level of 61.726. Therefore, we wait for the market to move to this level, and then we can trade downwards.
Gold continues to grow and continues to update its local highs. Characteristically, the previous week's trading ended close to 1550.10. The level is very strong and very important for gold. If you consider the peaks that were formed before the market moved to this level, you can see a clear divergence with all the indicators. At the same time, it is important that the market has already made a downward movement, which means that formally we can say that the divergence has already been worked out, or at least that we can not rely on it very much. As long as the price has stuck to the level of 1550, gold cannot be traded. It is necessary to allow the metal to consolidate above or below this level. It will be possible to trade in the direction of this movement. If fixation occurs downwards, then we take into account the movement to the level 1524.11.