Forex Daily Forecast, Analysis and Prediction

The GBP/USD pair rose during the session on Monday again, cleanly breaking above the 1.5250 level, an area that I have been talking about as significant resistance.

This market of course is one that I think is having a "two speed moment", as short-term traders will certainly see a bullish opportunity in this market overall, while a longer-term trader may see that we are forming a very bearish pattern at the same time.

I think that the prudent trader will simply wait for some type of resistive candle to start selling the Australian dollar yet again.

Advice remains the same for today short on a downward momentum change near the top of this range, go long for an upward momentum change near the bottom.

My USD/CAD prediction worked out very well, as can be seen from the hourly chart over the past week. Twice the price rose into the resistance zone above 1.0420 then fell to hit the first profit target of 1.0375.

In fact, the UK economic data that was released very shortly after my analysis had a very bullish effect on this pair, which shot up about 140 pips in half an hour or so.

The XAU/USD pair scored a gain of 0.78% on a weekly basis as congressional testimony from Federal Reserve President Ben Bernanke, who said there was no predetermined pace of reductions in the asset purchases, eased the greenback’s safe-haven appeal.

Gold rallied at the open of the Asian session today, rocketing over 200 pips higher in the first hour to its current price of 1318.06 on what appears to be some dollar weakness as the USD/JPY also picked up about 100 pips from its close on Friday.

The WTI Crude Oil markets had an interesting session on Friday, as we continued to try and grind higher, but fell short and ended up earning a pretty substantial shooting star.

If you had traded the Bitcoin forecast as I suggested when momentum kicked in and closed on a reversal of momentum you would have had a 50% return over in just over a week (~2500% annualised).

The New Zealand dollar has been a little bit more resilient than it antipodean cousin across the Tasman, the Aussie dollar.

The EUR/USD pair rose during the session on Friday, to show even more strength.

I am not a big fan of the Pound in general, but this move is pretty stout, and therefore I will be arguing with that.

Check out the forecast for the week on some of the major Forex pairs here.

The XAU/USD pair closed yesterday's session higher than opening but remained within the last four days trading range.