Forex Daily Forecast, Analysis and Prediction

The XAU/USD pair (Gold vs. the American dollar) scored a gain of 0.76% yesterday as safe-haven demand continued to lure some investors back into the market.

The WTI Crude Oil markets found strength during the session on Monday, but it should be noted that the session would have been weighted towards the Asian and European time frames, as the Americans celebrated President’s Day, therefore limiting the liquidity during part of the session.

The EUR/USD pair tried to rally for the Monday session, but as you can see pulled back at the 1.37 region. With this, the market formed a shooting star. This shooting star is placed at an interesting place for me, as the 1.37 level has offered resistance lately.

The cable took off to the upside originally during the session on Monday, but as you can see failed at the 1.68 level. The pullback formed a shooting star, and although this is a very bearish signal, I feel that the market really can’t be sold at this point as we have recently broken out.

The EUR/JPY pair rose during the session after initially falling on Monday, but remains below the 140 level. It’s at the 140 level that I see a significant amount of resistance, so we need to get above there in order to start buying again.

In a battle of safe havens, the CHF/JPY pair makes for an interesting trade at times. It very rarely moves rapidly, but is more of a “slow grind” as it tends to trend for very long periods of time.

Check out the Forex signal for the GBP/USD pair here.

Check out the Forex signal for the EUR/USD pair here.

EUR/USD's rebound from 1.3476 extended higher last week and broke the near term falling channel. Initial bias remains on the upside this week for 1.3739 resistance. Break will confirm that whole pull back from 1.3892 has completed at 1.3476 already.

The XAU/USD pair (Gold vs. the American dollar) had a positive week as weakness in the U.S. dollar helped prices boost their momentum.

The WTI Crude Oil markets fell during most of the session on Friday, but as you can see bounced hard enough to form a hammer. Over the last five sessions, we have seen four hammers and one shooting star.

The EUR USD pair rose during the session on Friday, but as you can see stalled at the 1.37 handle. This doesn’t surprise me too much, this is been a resistive barrier for the last two months, but I look at it as the beginning of a “thick zone”, as I see resistance all the way to the 1.38 handle.

The USD/CAD pair fell during most of the session on Friday, but as you can see found enough support just at the 1.09 level to bounce and form a nice-looking hammer. This hammer is shaped perfectly, and sits just below the vital 1.10 level.

The GBP/USD pair rose during the session on Friday, finally breaking out well above the 1.6650 level. Because of this, I feel that this market is ready to go to its next natural target, the 1.70 level.

Check out the weekly Forex forecast for some of the pairs here.