Weekly Forex technical forecast May 25 - 29

Forex market analysis for the coming week May 25-29. Let's study the main trading opportunities with the key underlying assets.


Last week's divergence was worked out by the market in the form of reaching 1.0996. After that there was a reversal, which pushed the price to the level of 1.0901. Now we are saying that the current local high is the same as the previous local high. This confirms the level and its importance. Therefore, we can say that it is from the previous movement allows to draw 2 local levels, which will be the markers for trading. If the market rises above the level of 1.0925, it will be possible to trade up. If there is a downward movement from 1.0889, then it will be possible to trade down.



An exit above the trend line, which was discussed in the previous week's review, did not come true. The market strengthened outside the trend line, but continued to move downwards, as a result of which it was even below 1.2199. The weak movement can be traced on all the indicators, which are in the area above zero for a very short period of time. Thus, we can say that the prevailing dynamics for the currency pair has not changed, which means that we can trade down. On the other hand, we are at the stage of correction of downward trade and is risky. It will be possible to trade upwards only if the price rises above 1.2199.



The dollar against the Japanese yen has returned to the sideways development stage, reaching the same corridor, which was relevant for this currency pair, when we talked about low volatility and absence of a clear trend. The current dynamics is confirmed by both indicators and the price chart. Therefore, we can say that while the price is inside a narrow sideways corridor, it is impossible to trade. In the future, it will be possible to trade in the direction of exit from this corridor.



For this currency pair, we still say that for the asset continues to be the prevailing upward trend, but the previous growth was so strong that the current stage needs a lateral correction. This is what happens. If you look at the indicators, they are all close to neutral values and do not show elements of high volatility. This extremely narrows down the opportunities for trading, but we can say that the price of the asset is at the top of the sideways correction corridor, which means that it is theoretically possible to consider variants of descending trade.



The dollar against the Canadian dollar confirmed the importance of the local level at 1.3866. This level has been tested by the price at least three times in recent weeks, and each time it has led to a strong growth. The previous week was no exception. Indicators are close to the central values and show no obvious trend. Therefore, in current conditions we can say that upward trade will be possible only if the price is fixed above the level of moving averages. If the market starts the opposite movement downwards and manages to consolidate below 1.3980, then it will be possible to trade downwards.



Last week, the dollar against the Swiss franc fell below 0.9677, moved downwards, after which there was an increase, as a result of which the price returned back to the sideways corridor and again approached the important level of 0.9715. Therefore, everything we talked about the previous week is relevant for the current market stage as well. Thus, we can only repeat that as long as the price is within the range of 0.9780 and 0.9677 it is not possible to trade. Further - in the direction of exit it will be possible to trade in the direction of other more important levels.



The dollar started to get cheaper against the Russian ruble, consolidating below 73.06. This is the signal we talked about a long time ago and it allowed us to earn the previous week. If we look at the downward movement, it is quite significant, for the result is that local lows were reached, not only in price, but also in indicators. Achieving local lows is always a dangerous part of the market, because it often leads to correction. We can expect that the level of 73.06, which has been tested many times before and showed its importance, is not forgotten by the market. Therefore, we expect an upward correction to this level.



Gold managed to consolidate above the level of 1734.521, but the upward movement did not work. Now the market is looking down and all the indicators also keep looking down. The only signal to work with gold is that if the market manages to rise above the level of 1734.521 and simultaneously above the trend line indicated on the chart, then it will be possible to trade up.

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