Forex Weekly Forecast & FX Analysis November 22 - 26
The position of the Euro keeps on getting weaker against the US dollar. Last week, this currency pair made a strong downward movement, as a result of which all instruments reached their minimum values for more than a few months. As for the price chart, the market dropped to 1.1280 for the first time in a very long period. Thus, we can state a strong downward movement. At the same time, we are already at the top of this movement. Therefore, it is too late for bearish trading. However, it should be noted that the oscillator has been in the oversold area for a very long time. Meanwhile, the price has significantly moved away from the moving averages. Therefore, the market may need a correction, as a result of which you can consider bullish trading options.
The British pound is attempting to overcome the downtrend against the US dollar, breaking the trend line on the right. The upward dynamics can be traced based on all analytical instruments that show a clear upward slope, having already passed into the positive area. However, it should be noted that the current upward movement is corrective. It can end at any time. Therefore, it is too late to open a bullish contract. It can be expected that the market will return to its main trend, namely the downward movement. Hence, you can consider bearish trading options. The contract can only be opened if the price falls below the level of 1.3482.
The Japanese yen continues to develop an uptrend against the US dollar. The trades of the last month developed mainly within the ranges of 113.461 and 114.222. At the current stage of market development, you should pay attention to the fact that all indicators are still showing an upward trend. At the same time, the moving averages and the price have almost crossed the indicated range on the price chart. These factors confirm the presence of a significant upward movement. As a consequence, you can consider bullish trading options.
The Australian dollar is developing a downward movement against the USD as a part of a downward correction. As a result of the downtrend, the price has consolidated below the moving averages, reaching several important price levels at once. The current stage is characterized by the presence of divergence between the price and the indicators. If you look at the price chart, you will clearly see a downward movement, within which the minimum points are consistently formed. As for the indicators, they are all directed upwards. Taking into account the fact that the price is next to the strong level of 0.7265, as well as the presence of divergence, you can consider bullish trading.
The past week has led to a fairly strong upward movement for this currency pair. This movement ended around the strong level of 1.2622. Pay attention to the last two tops on the price chart. After analyzing them, you may find that they contradict the indicator. Thus, this currency pair has formed a divergence, which is amplified by the price being close to a strong level. Therefore, you can consider options for bearish trading.
Last week, the US dollar made a strong upward movement against the Swiss franc, having stopped near the level of 0.9300. Note that this dynamics of the market has been fully confirmed by the trading instruments. Indicators and price have formed a maximum point when touching this level. After that, the price chart returned to its normal values below 0.9300 quite quickly. In general, the current price stage is characterized by upward dynamics. As a result, we can only consider bullish trading options for the current trend.
Last week, the US dollar was trading against the Russian ruble mostly positively, staying around the level of 73.32. The price chart shows an upward trend. However, if you look at the indicators, you can see that they all moved away from their maximum values. At the moment, they are characterized by a downward slope. The most recent trades allow us to draw an uptrend line, which rests against strong levels. The market is at the very top, which means that it may need a correction. Therefore, when the price falls below the indicated trend line, you can consider opening a bearish contract.
The price of gold keeps on developing an upward trend. The price chart continues to rise. However, once again, we must note that its values are far from the moving averages. Therefore, it is highly likely that the market will move horizontally in order to gradually approach the average values. As for the indicators, quite recently, all of them were at their maximum values. Now, they are pointing\ down. It is possible to expect that the market will move horizontally while simultaneously pulling down to the trend line. Therefore, you can consider bearish trading options.