Forex Weekly Forecast & FX Analysis December 6 -10
Last week the Euro made upward movement and regained some ground against the US dollar. As a result, the price was framed inside a range of 1.1280 and 1.1347. Please note that the range is quite narrow, and the price has been unable to break it for a long time. If you analyse the last candlesticks, there is no volatility, as well. At the same time, the indicators confirm the upward movement, they demonstrate growth and find themselves in the positive area. However, while the price stays inside the range, it is better not to trade. I recommend waiting in which way the range will be broken through and opening a contract in this direction. The downward movement is the most likely since it corresponds to the main trend.
The British pound has slowed down its movement against the U.S. dollar. Last week's trades were mainly around the strong level of 1.3300. Pay attention that there is almost no volatility. It is well seen in the histogram, which has literally stuck to zero and all its columns are rather small. If you look at the price chart, you can build a graphical figure of a wedge. The price is very close to the top of the figure, which suggests not to trade at the moment. Let's wait in which direction this figure will be broken and open a contract in the direction of the breakdown.
The US dollar made a strong move down against the Japanese yen last week and fell below moving averages and several important levels. Nevertheless, if you check the most recent price movements, you can see an upward dynamic, as both price and indicators are looking up. Moreover, they start moving upwards from their monthly minimums. I can recommend the same I did for the previous currency pair: the wedge figure allows trading only when it's broken through. The only exception here is that a long contract can only be opened if the price also rises above the strong level of 113.460.
The Australian dollar continues the active downtrend stage against the US dollar. It is only gaining strength with each passing day. As a result, long-standing and quite strong divergence is being formed. We have been tracking the divergence for several weeks, and this week is no exception, as the price keeps falling and keeps updating its lows, and the indicators are looking up. Therefore, given the divergence and the price being very far away from the moving averages, we can consider trading up. But this will be a corrective and dangerous trade.
The US dollar continues to strengthen against the Canadian dollar. The market continues to grow quite strongly and updates its maximum values for a long period. This abnormally high growth is accompanied by the divergence, which has been forming on the currency pair for several weeks already. Once again, I draw your attention to the fact that the price is rising and the indicators are looking down. Moreover, all the indicators are very close to zero, and to falling to the negative area. Thus, it is reasonable to consider trading down.
You can trace a local upward movement for the US dollar / Swiss franc pair, as both the price and the indicators are rising, but the volatility is low and the trades are mainly done close to the moving averages. For the current market stage, the price range between 0.9192 and 0.9218 is very important. I’d recommend not to trade while the price is inside this range, because it practically coincides with the moving averages. We wait in which direction the range will be broken through and open a contract respectively.
Last week, the US dollar made a downward movement against the Russian ruble. As a result, the price almost reached a strong level of 73.32 and ended up very close to the moving averages. Pay attention to the histogram, which fell into the negative area and reached its minimum values for more than a month. Thus, we can say that the market reached its local or corrective minimum, and therefore we can consider trading up, following the main trend for the current price stage.
Gold has traded mostly negative in recent weeks. If you look at the price chart, you can clearly trace the downward movement. As a result, the price dropped below the moving averages and several important levels at once. We should also note that last week we reached the level of 1766.215. After that the downfall has stopped. At the same time, all of the indicators are looking up, which means we are dealing with a divergence. Therefore, we can consider trading up.