In the next weekly review we can state the fact that the price development for this currency pair occurs within a fairly narrow sideways corridor with the borders of 1.0714 and 1.0793. This corridor is confirmed by all the indicators that are in neutral positions during the formation of this movement. Another important characteristic is that the levels of moving averages are rapidly approaching this channel. Therefore, we can only say that the current market segment allows using oscillators and channel strategies for trading within the boundaries of the designated corridor.
New Zealand dollar is strengthening against the US dollar. The upward movement led to the market reaching an important psychological level, but at the same time we are talking about divergence. All indicators are looking down, while the price is looking up. The above mentioned fact that the price is close to the upper level, so there is every reason for descending trade, where the maximum target will be at 0.6585.
Last week, the euro rose very strongly against the Russian ruble. Visually, this is the strongest growth of the past week. If you look at the chart, you can only say that both the price and all indicators are at their maximum values. All instruments show maximum values in more than 4 months. In theory, we can consider trading downwards as a correction, but given the fact that the market continues to update the local highs, it is not recommended to trade this currency pair in the coming week.
The Australian dollar against the Swiss franc is still traded in the sideways channel with the borders of 0.6502 and 0.6585. Once again, we can confirm that this sideways channel has been forming for a long time, and it fully coincides with the indicators, which do not show the trend. Despite the fact that not so long ago the market tried to gain a foothold in the area above this corridor, it did not lead to success, taking into account that not so long ago the market tested the lower boundary of the channel, leaving a long shadow downwards, we can expect that the price will need to grow. So, I am considering upward trading options.
This currency pair is another one in this weekly review, when we talk about a very strong growth, as a result of which both the price and all the indicators are at local highs. Going back a little bit, we can note that the working out of the level 1.7177, we predicted quite accurately and it was possible to earn on it. But now it is not recommended to trade, because the growth was excessive and the market may need some correction. Often, this correction consists in minor side oscillatory movements. Therefore it is better to abstain from trading.
The New Zealand dollar against the Swiss franc forms a downward trend, which is not only moving downwards, but also moving from the upper boundary of the price channel. The price channel has already been broken-down, and the moving averages levels were broken down at the same time. The downward movement is amplified by the fact that the indicators, which do not contradict the fall, are looking in the same direction. Moreover, the indicators are not at the local lows, which means that there is still potential for falling. Therefore, the main idea of trading this currency pair is down trading. However, there is an important point here. We are already late for the beginning of the trend movement and we will basically catch up. This is not the best position. Therefore, we can use a trend line as an alternative theory, and wait for the price to break it up, and then open an upward trade.
The downtrend line that we discussed in the previous week's review was broken by the market, which was followed by a significant upward movement, which turned into a sideways trend. The sideways dynamics is also confirmed by the oscillators, which in the distance of the last two months can't significantly differ from the neutral line. The results of the last week allow us to hold another level of 7.0152 with sufficient confidence. The level is quite strong and the price is developing below it. It is important to take into account that the oscillator has gone beyond the boundaries in which it develops at the main time. Therefore, there are options and potential of the market for growth. Taking into account the fact that this level has been tested many times recently, the market will stretch to this level, which means that we consider options for trading up to this level.