Weekly Forex techincal forecast January 11 - 15

Author: Timur Sveridov


EUR/USD

The euro continues to strengthen its positions against the US dollar and the upward dynamics is clearly visible for the currency pair. At the same time, there is no need to talk about the strength of the trend, since the indicators do not confirm this movement. For example, if you analyze the histogram, you can see that most of the time it is in the negative area. 

The oscillator is in neutral positions. Therefore, we can say that, although the upward dynamics is dominant, a strong upward movement is not expected. Nevertheless, according to the basic laws of technical analysis, you can trade exclusively upward. The assumption is reinforced by the fact that the price has recently tested the level of moving averages.

Parsing EUR / USD by moving averages, RSI and MACD

GBP/USD
For this currency pair, the last week was characterized by a decrease in volatility, when the main trading took place in a fairly narrow price range. Moreover, this movement is typical not only for the price chart, but for all indicators. The current market situation allows us to define a sideways range with the boundaries of 1.3538 and 1.3648. You cannot trade as long as the price is within the indicated range. We are waiting in which direction the range will be broken and in the direction of this movement it is possible to open a contract, the most likely movement is upward, since as a whole the upward dynamics dominate for the currency pair. If there is an opportunity to trade down, then such a trade should be approached extremely carefully, since the level of moving averages is located close below, which works very well for this underlying asset.

Parsing GBP / USD by moving averages, RSI and MACD

USD/JPY
Last week, the dollar significantly strengthened its positions against the Japanese yen, making a strong and rather volatile upward movement. The only thing you need to know about this movement is that it stopped and a correction went around the 103.868 level, as well as at about the level of the moving averages. There is no point in considering indicators, since they are all in an upward stage and in fact confirm the movement that we spoke about on the price chart. Therefore, we can expect that the market will make a downward correction and bounce off the indicated level and moving averages. Therefore, we open a contract for a fall.

Parsing USD / JPY by moving averages, RSI and MACD

AUD/USD

For this currency pair, the main movement is still the upward movement. This movement is confirmed not only by the price chart, but also by all indicators. The only thing that can be said is that if we look at the indicators, there is a clear tendency towards a decrease in volatility, which is expressed mainly in the change in price movement to horizontal. Therefore, we can expect that the market will move into the unprotected part of the sideways correction, which means that you can trade in sideways ranges.

Parsing AUD / USD by moving averages, RSI and MACD

USD/CAD
The dollar continues to lose ground against the Canadian dollar. The main trend for this currency pair is downward, and this trend has been forming for a very long time and is growing almost every week. Now you need to pay attention to the fact that the previously introduced additional level 1.2774 works very well and the price undergoes a correction every time on it. We also pay attention to the position of the oscillator, which practically does not leave the negative area. Taking into account the above, we can expect an upward correction to the indicated level with a subsequent return of the scene to the downward movement.

Parsing USD / CAD by moving averages, RSI and MACD

USD/CHF
The main dominant trend for the dollar against the Swiss franc continues to be downward. Moreover, if we consider the trades of the last week, there is an upward movement. We note right away that the indicators do not give signals for trading, since there are no patterns there. Therefore, we focus on studying the price chart and there is something to see here. We mainly note the fact that the upward movement upwards led to the reaching of the level of the moving averages. Therefore, we can expect that this level will require correction, which means that we can trade down.

Parsing USD / CHF by moving averages, RSI and MACD

USD/RUB

The main feature of the dollar's trading against the Russian ruble over the past weeks is the lack of directional movement, but rather high volatility within the sideways trend. In fact, we can talk about a side corridor with borders 73.00 and 74.80. The moving average level is located within this range, and the price develops practically around this level. The indicators are in neutral positions. In this regard, we can only say that the market needs to be given time for a correction, and then trade in the direction of the breakdown of the indicated range.

Parsing USD / RUB by moving averages, RSI and MACD

Gold

Gold is showing attempts to change the main trend, as the upward trend has already been broken down. The downward movement turned out to be quite strong, impulsive and very fast. As part of this movement, the price was already below the trend line, below three important levels at once and below the level of moving averages. Such a strong drop was reflected in the indicators, which simultaneously ended up in the negative area, and the oscillator found itself in the oversold area. Usually, such a strong movement requires further correction.

Parsing Gold on moving averages, RSI and MACD
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