Weekly Forex Techincal Analysis March 15 - 19
The currency strength meter can tip you off to several trading situations you should be aware of, such as the strength and weakness of a currency in relation to other currencies.
The euro against the dollar reached a local bottom of the downward movement around the level of 1.1863. After that, an upward movement began, which, in fact, continues to this day. As part of this movement, the histogram has practically entered the area above 0, and the oscillator has worked out the oversold area and entered the area above 50. Thus, we are talking about the partial or complete dominance of the uptrend, which means that we can consider trading options for an increase, especially since and the moving averages change their slope.
The development of the price of the British pound against the US dollar occurs close to the level of 1.3850 and close to the level of moving averages. At the same time, the upward dynamics is still dominant, although the market is at the stage of correction. Typically, the correction occurs at the levels of moving averages and strong price levels, after which an upward movement began. The histogram has already started plotting in the area above 0. Taking into account the fact that the price is already above the level of the moving averages, you can open an upward contract.
A strong upward movement for this currency pair led to the fact that it was squeezed within a rather narrow price range with the borders of 108.395 and 109.106. If you look at the indicators, there is nothing interesting there. The only thing - it can be noted that after its local maximum, which was remembered also by the fact that the oscillator rose for a long time into the overbought area, but there was no strong movement. Thus, we can only rely on the price chart and say that while the price is within the indicated range, we do not trade. We are waiting in which direction the range will be broken and open a contract in the direction of the breakdown.
The corrective downward movement of the Australian dollar against the US dollar led to reaching the level of 0.7683, after which the price turned up and reached the level of the moving averages. The market is in this position at the moment. If you look at the indicators, they all have a pronounced upward slope and thus confirm the upward trend. Nevertheless, we take into account that the price has rested against the level of moving averages and it is very likely that it will go down again from it. An upward contract is possible only if the price makes a sufficiently strong upward movement and consolidates above the level of 0.7810.
The dollar against the Canadian dollar is trading in a downtrend and this trend can be clearly traced both on the price chart and on indicators. Pay attention to how clearly the price works out the level of moving averages and each time it reaches it, it makes a significant downward movement. Moreover, the price is now even below the strong level of 1.2609. Thus, the downtrend is strong and the only thing we can do is trade in the direction of this strong move, and therefore a decline.
The dollar is trading above the strong level of 0.9218 against the Swiss franc, but last week it significantly reduced its volatility, translating the movement into mostly horizontal. The uptrend has not lost its strength and is still dominant for this currency pair. Taking into account the fact that the current price is close to the level indicated above, we can expect in which direction it has moved. An upward movement is most likely and an upward contract can be opened. If the price turns out to be below the designated level, then a downward contract may be opened.
The US dollar is trading against the Russian ruble mostly horizontally and within a fairly wide sideways range of 73.32 and 74.80. At the same time, the movement is not impulsive, and this is very clearly visible on the oscillator, which practically does not move away for a long time from the level 50. Nevertheless, the dominance of the downward dynamics is clearly traced, since the moving averages look down, and the price basically sticks to the lower border of the channel. Therefore, given that the price is now at the lower boundary of the channel, we can expect an upward movement and open an upward contract.
Gold is still trading in a downtrend, but in recent weeks, this movement has slightly changed to a sideways range with the borders of 1688.958 and 1734.521. It is characteristic that, despite the obvious lateral movement, the indicators have a pronounced upward slope, which theoretically may indicate the dominance of upward dynamics, but in reality we are talking more about working out a sideways corridor and correction. In this case, we can say that while the price is within the range, we do not trade, as soon as it goes beyond this range, we can open a contract. The most likely exit from the range down.