Forex Daily Forecast, Analysis and Prediction

Silver has rallied a bit during the early hours here on Friday as we continue to see a lot of support at the top of the previous bullish flag that we broke out of. So, it looks like we see a lot of market memory coming into the picture that was previous resistance and now in support. If we are rallying at this point in time, and it looks like we will try to the $43.35 level could be targeted in the short term with the flag here, offering quite a bit of support all the way down to about $41. Even if we break down below there, if we were to show selling pressure, we might test the $40 level, which was a previous swing high with the 50 day EMA coming into the picture offering support as well. Ultimately, if we break out to the upside, then we might fulfill the flagpole here right around $46.

The USD/ZAR is near the 17.35500 realm as of this early morning with a wide spread being seen as financial institutions start their new week in the aftermath of the U.S Fed decision last Wednesday.

The US dollar initially fell against the Japanese yen during the trading session on Friday, reaching to the 50-day EMA before turning back around. It's worth noting that the Bank of Japan had an interest rate decision, and it, of course, didn't really do anything. But at this point in time, there are questions asked whether or not they will have to cut, despite the fact that the Federal Reserve cut on Wednesday.

The US dollar rallied against the Mexican peso a bit during the trading session here on Friday, testing the 18.50 MXN level before selling off. All things being equal, it’s also worth noting that we had formed a couple of hammers during the previous session, bouncing from the 18.20 MXN level. All things being equal, this is a pair that is going to continue to be noisy mainly due to the interest rate decision coming out of the Federal Reserve, and of course questions about the US economy overall.

The euro dropped a bit against the Japanese yen during the day on Friday, breaking below the ¥174 level. The ¥174 level is an area that previously has been resistant, as it was the top of the ascending triangle that I have been watching so closely. All things being equal, the market is likely to continue to see this area as important, but the short-term pullback I think offers a bit of value that people might be willing to take advantage of.

The Australian dollar is gone back and forth against the Swiss franc during the trading session on Friday, right in the middle of the larger trading range that we have been in for what seemed like a lifetime. In other words, this market is very “neutral”, but what makes it so interesting to me is that it’s a major barometer for risk appetite, as the Australian dollar is based on commodities, and of course the Swiss franc is considered to be a “safety currency.”

The New Zealand dollar has fallen a bit during the trading session on Friday as we are looking to the 0.5850 level, an area that has offered support a couple of times recently. Ultimately, if we can break down below there, we could see a test of the 0.58 level, and I think it’s possible that we have a “zone of support” in this region. Breaking down below that would be a very ugly turn of events, and it is worth noting that the New Zealand dollar has completely fallen apart over the last couple of days, and things are getting a little overdone.

The German index rally initially during the trading session on Friday, reaching toward the 50 Day EMA, before pulling back a bit. All things being equal, this is a market that is still in the midst of some type of consolidative action, and we are trying to figure out where to go next. Ultimately, if we can break above the 50 Day EMA, that would be a very bullish turn of events, and it could open up a move toward the €24,500 level

Bitcoin fell sharply before rebounding from $112,000 – today will reveal whether this was a spike with a fast recovery, or a sign of significantly lower prices soon.

The GBP/USD exchange rate crashed below the important support at 1.3500 after the Federal Reserve and the Bank of England delivered their interest rate decisions. It was trading at 1.3470 on Monday, down sharply from this month’s high of 1.3732.

The EUR/USD exchange rate retreated for three consecutive days, moving from last week’s high of 1.1920 to 1.1747. It remains much higher than August’s low of 1.1390. The focus now shifts to the upcoming US data and Federal Reserve officials' statement.

The AUD/USD exchange rate pulled back for three consecutive days as the recent rally took a breather after the Federal Reserve interest decision and after Australia published its August jobs report.

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Despite the slight hawkish tilt from the Federal Reserve, stronger than expected US economic data and the 0.25% rate cut were enough to push major US stock market indices firmly higher to new all-time highs, followed by the precious metals Gold and Silver.