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Weekly Technical Analysis (May 4 – 8)

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Technical analysis of the Forex currency market for the upcoming week of May 4-8. Consider the main opportunities for trading leading underlying assets in the framework of the forthcoming five-day activity.

EUR / USD

For the first time in a long time, the price of the euro against the dollar rose above 1.0901. Thus, we can talk about the formation of an uptrend, however, if you look at the indicators, then such a development of events is doubtful. Firstly, we note the fact that the histogram, although growing, is not there at a slow pace, and there is no clear trend. Secondly, the oscillators are already in the overbought zone. Separately, it should be noted that as part of the growth, the level of 1.0960 was reached, forming a candle on it with a long shadow up. Together, we are talking about the possibility of trading down. However, it should be borne in mind that the level of 1.0960 may be the key, and if the market manages to gain a foothold above it, then options for upward trading to the level of 1.1062 are possible.

GBP / USD

The British pound against the US dollar is still developing within the borders of the side corridor and extremely low volatility. The current side corridor, which will be relevant, and next week, is framed by levels 1, 2405, and 1.2667. The indicators are still at neutral values ​​and are not able to move away from them for a long time. This is especially clearly seen in oscillators that periodically reach overbought and oversold levels, but immediately return to the “50” mark. All this allows us to talk about the dominance of lateral trends, and therefore about the possibility of trading in the range.

USD / JPY

This currency pair is another one that develops within the side corridor and is devoid of volatility. We talked about extreme volatility in the previous weekly review, and this information continues to be relevant. The only thing to note is that there is still a slight bias towards the fall, which is confirmed by the positions of the oscillators below 50. The histogram is looking up, and the market has tested the level of 106.710 three times. We continue to observe how this level will be worked out by the market, and depending on which direction the movement will start from it, it will be possible to trade in this direction.

AUD / USD

The Australian dollar against the US is still developing as part of an uptrend and continues to update its trend lines. Important information on this asset is that the market is periodically updated with local maximums, but if you look at the indicators, this is not confirmed. It is especially clearly traced by the histogram and by the last three peaks. Indicators look down, and the price chart looks up. The price only makes attempts to go below the trend lines, which means that in combination with divergence, you can consider options for trading down.

USD / CAD

The dollar against the Canadian dollar after working off the triangle failed to form the desired trend and is developing within the lateral range. The main range, the strength of which is confirmed by the market, is the levels of 1,4004 and 1,4238. These levels are approved not only by price but also by the position of moving averages. The indicators are close to neutral values ​​and do not make any explicit trend movements. Therefore, given the current value of a currency pair, you can consider upward trading options.

USD / CHF

The dollar against the Swiss franc, despite the fact that it periodically makes a fairly strong movement both above and below, still develops within the side corridor. This is clearly seen in indicators that, despite the price spread, are very close to neutral values ​​and are not able to move away from these values ​​for a long time. Now the market is near a strong level of 0.9627. Near this level, a candle formed with a long shadow down and a short body. This indicates uncertainty, which means there are all options for a reversal. Therefore, we are considering trading options up to the level of 0.9715.

USD / RUB

For the dollar against the Russian ruble, the lateral corridor 73.06 and 75.18 continues to be relevant. The market several times tried to go beyond this corridor, but each time very quickly returned inside. Therefore, it is impossible to say that the price managed to gain a foothold outside the range. Therefore, what we talked about in the previous weekly review continues to be relevant, namely, while the price is within this range, it is impossible to trade. In the future, in the direction of leaving the range, it will be possible to trade.

GOLD

Gold is developing as part of an uptrend, but the current market situation is more likely to be characterized by a stage of the corrective movement. This can be easily traced by indicators that look down, as well as by the price chart, which reached its maximum at the level of 1734.521 and has already tested the indicated level at least three times. It is characteristic that within the framework of the current correction, the market has already fallen below the level of 1688 and also has come close to the level of moving averages. If the market manages to fall below the level of moving averages, then it will be possible to trade for a fall with a target at around 1632.584.

Also read  EUR/USD: Euro bears are approaching 1.1100

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