Forex Daily Forecast, Analysis and Prediction

EURUSD: Weakly bearish but support @1.1128

Upward revisions to final December PMI data across the Eurozone and better-than-expected retail sales failed to boost the Euro significantly

Iran fired over a dozen ballistic missiles at two military installations in Iraq that house US troops, in response to the killing of a top Iranian general in Iraq last week.

Tensions are renewed in the Middle East, with the threatening language between Iran and the United States of America, after the latter assassinated a prominent Iranian military commander, Qasim Soleimani, and his companions.

The price of gold has risen by more than $40 since the killing of Qassem Soleimani.

AUDUSD: Bearish on RBA rate cut rumours

For the third consecutive day, the price of the GBP/USD pair is attempting to bounce back after sell-offs that pushed it towards the 1.3053 support after investors fled to the dollar as a safe haven due to the new tensions between the United States and Iran.

USDJPY: Bearish on risk-off sentiment

Although the announcement of inflation figures from the Eurozone does not bring about a major change in the performance of the European currency.

Bitcoin: Bullish but resistance at $8k pivotal

The US dollar has gapped lower to kick off the week on Monday against the Japanese yen but then turned around to show plenty of strength.

The S&P 500 gapped lower to kick off the week on Monday, and then pulled back towards the lows that we ended up forming on Friday.

The NASDAQ 100 initially pulled back to kick off the week on Monday, but as you can see, we have seen a significant move higher later in the day and more of a “risk on” type of move.

The Euro has tried to rally a bit during the trading session on Monday, reaching towards the 1.12 handle.

Following a strong rally, after this currency pair completed a breakout above its support zone, the upside is exhausted.