In the previous week's review, we looked at how the trend line worked out, which means that we made good progress on the growth of the Euro against the Swiss franc. This growth is remarkable because the oscillator is already in the overbought area and the histogram has reached local highs, which confirm the previous high point, after which the market sank very strongly. Taking into account the fact that the current stage of the market has moved away from the important psychological levels, and the growth has turned out to be very strong, together with the historical behavior of the price, we can consider options of trading downwards.
Everything that we talked about in the previous review of this currency pair is still relevant at the moment. We still talk about the existence of a sideways corridor with the borders of 0.6492 and 0.6585. This corridor is also confirmed by indicators that are close to neutral values and do not show any dynamics. The only thing that can be noted is the fact that moving averages are within the specified range. Therefore, as long as the price is in this range, it is impossible to trade. As soon as there is an exit outside the range, we open a deal.
The Euro continues to grow against the Russian ruble and renews its local highs on the price chart. However, the current stage is interesting because we can consider trading downwards. First of all, let us pay attention to the indicators, each of which looks down. The price is looking up, which means we are dealing with divergences. The second factor is the histogram, which over the past few days can not get far from zero values. The third factor is a strong separation of the price from the level of moving averages. In the aggregate, we can consider trading downwards.
This currency pair attempts to fix the price above the strong level of 0.6585. This attempt is still a classic one, because we see a break-up up, the subsequent testing of the designated level and an attempt to form a new upward movement. This attempt is confirmed by the histogram, which is at the local highs for the first time since the formation of the sideways corridor. The oscillators are still close to neutral values, but there has already been an attempt to test the overbought level. Thus, we consider upward trading options.
The current market stage for this currency pair is characterized by the dominating upward trend. At least this can be traced because the price is above the level of moving averages and indicators in its mass develop in the area above zero. Last week there was one event, which allows to consider options of upward trade. The market has tested the level of moving averages, and then there was a reversal upwards. At the same time, the histogram fell below zero, but this movement was not strong. Taking into account the fact that oscillators are in neutral value, and price has not moved far away from moving averages, we can consider options for working upwards.
Last week, the New Zealand dollar against the Swiss franc tried to consolidate below the range, but quickly returned to its borders. Interestingly, this downward movement has stalled at the moving averages level. If you look at the indicators, they also show this downward movement, but also show a quick return to zero. Therefore, we can repeat what we considered in the previous week's review - while the price is within the range, you can not trade, but in the direction of exit from the range can trade. The only exception is trading downwards, because there we have to wait not only for the exit from the range, but also for the exit below the level of moving averages.
This currency pair is characterized by the dominating downtrend. This can be said if you look at the price chart. This is confirmed not only by the presence of the current trend, but also by the long-term development of the price below the level of moving averages. In this case, if you look at the indicators, the opposite trend can be seen locally. The current market segment has led to the fact that all indicators look up and are close to the first time in a long time to enter the positive area. Therefore, we can say that if the market fixes above the designated trend line, we can trade up, where the limit target will be at 7.0521.