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Weekly technical analysis (May 11- 15)

Best Technical Indicators for Day Trading

Best Technical Indicators for Day Trading

EUR / USD analysis

Last week, the euro fell against the dollar. If you look at the price chart, it is striking that the market is devoid of volatility, and it also has a clear tendency to analyze by oscillators, since there is a clear movement from the overbought zone to the oversold zone. Characteristically, this week we reached the oversold zone, which means growth can be expected. This assumption is reinforced by the fact that the histogram is in the negative zone, but has already begun to grow and is approaching the zero mark. Together, we are talking about the ability to trade up to the level of 1.0901. The backup option is at 1.0790. If the market consolidates below, then it will be possible to trade for a fall, but this will be an unlikely event, the onset of which will allow us to think about global sales.


GBP / USD analysis

The currency pair is still deprived of volatility. There are no trends and patterns – there is only lateral movement, and for this movement the average level is 1.2405. It is also interesting that this level fully coincides with the current price level and with the level of moving averages. The lack of volatility is also traced by indicators. Separately, you should pay attention to the oscillators. Here, movement from the overbought zone of the price to the oversold zone is very clearly traced, and this movement has occurred more than once. Given the fact that now there is a movement from oversold to overbought, we can expect the growth of the British pound against the dollar.

gbp usd

USD / JPY analysis

Dollar volatility against the Japanese yen has been reduced to a minimum, but despite this, a downward trend can be traced. It is very important that this trend contradicts the movement of all indicators. Yes, the main indicators, as well as the trend, are at the bottom, which formally confirms the trend, but all indicators form less deep depressions each time, which indicates divergence. Thus, the first thing to talk about is the dominance of a downtrend, which means that it is possible to trade down. However, divergence provides a second trading opportunity. If the market consolidates above the trend line, then it will be possible to trade for an increase.

usd jpy

AUD / USD analysis

The Australian dollar against the American is one of the most poorly predicted, since there are practically no levels and no clear signals on the indicators. We can talk about the dominance of the uptrend, which although losing its coolness, but is still significant. Separately, attention should be paid to the position of the histogram, which indicates that there is no volatility and strong trend movement. Therefore, we can say that the active stage of the uptrend is over. Therefore, now we are dealing either with correction or with the beginning of a new movement. However, in conditions when volatility is reduced throughout the currency market, a new trend should not be expected. Therefore, the price is in the correction stage, which means that the market will tend to the level of moving averages. Therefore, we trade down.

aud usd

USD / CAD analysis

The current stage of development of the price of the US dollar against the Canadian is characterized by the significance of the level of 1,4004. Last week, the market closed below this level and fixed below it, without making a strong downward movement. It is characteristic that at the same time, the histogram was fixed in the region below zero. We still say that the currency pair is prone to lateral movement, but fixing the price below the indicated level allows us to consider options for downward trading. In addition, it is important that the currency pair still has an open gap from the bottom.


USD / CHF analysis

Once again, the histogram clearly shows that the currency pair has no obvious trend. Only the lateral corridor with the boundaries of 0.9627 and 0.9831 can be distinguished. The current price is in the middle of this level and coincides not only with the price level, but also with the level of moving averages. The only possibility for analysis is that the histogram is now in the upper part, but has already begun to fall. Therefore, you can consider options for trading down.

usd chf

USD / RUB analysis

For the third week in a row, we are talking about the fact that for the dollar against the Russian ruble, the lateral corridor with borders of 73.06 and 75.48 is relevant. The market cannot go beyond this corridor and gain a foothold there. There are local exits, but immediately after this you should return to the corridor. During this time, moving averages also reached the corridor and are close to its center. There is no volatility on indicators. Therefore, again, we repeat that while the price is within the range, you can not trade. In the direction of further exit from the range, you can trade.


GOLD analysis

For gold, an interesting situation has developed. On the one hand, we are talking about the significance of the uptrend, which has dominated the asset since the beginning of the year. On the other hand, the market has long been unable to break through the level of 1734.521. In this case, a histogram is noteworthy, which for a long time has been in the region below zero. At the same time, the oscillators are below zero, but at least occasionally went into the positive area. Despite this dominance of the downward trend in indicators, this is not visible at the price. We see just a side correction. Moreover, this correction has quite strong upward movements. This is not visible on the indicators. Therefore, we can assume that soon the histogram will rise to the positive zone and when growth begins. It will be possible to buy a contract for an increase when the market is above the level of 1734.521.


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