Forex Daily Forecast, Analysis and Prediction

The EUR shares a commonality with the Greenback. Together they form the most traded currency pair of all the pairs available to trade. Look at the largest economies that make up the global landscape and it becomes apparent why. At times it also makes it one of the more difficult pairs to trade. Volatility will often stop out even the most skilled of day traders.

The EUR/USD's Bollinger Bands and RSI and centerlined and the StochRSI and Full Stochastic are looking for a excuse to move downward. Price action seems to not want to allow that excuse but would rather allow the march upward for the Euro to continue. Both heavy news items tomorrow look beneficial for the dollar, I think the price action will be overruled.

All the heavy news items bombing the EUR/USD pair today look terrible for the dollar, so today's futile analysis with the technicals on these charts goes something like this. Bollinger Band's, Full Stochastic, StochRSI all touching heaven's front door, while the RSI window shows the RSI still climbing the front steps

EURUSD bulls did manage to stay above resistance level, however low trading range has formed. This action provides first signs of bulls lack of confidence. Trend is not established yet. Waiting action continues with possible buying opportunities, however more bouncing is expected above resistance barrier.

With no major news for the EUR/USD pair today, I have only Bollinger Bands, Full Stochastic, StochRSI and RSI to go by for direction. Each indicator is far above it's respective centerline except the RSI, which is wrapped around it's centerline. The price action has been exploring the higher reaches of a weakening dollar but only finding strength around the 1.4500 area.

There were a number of great intra-day technical plays across the G10. We will focus on the Yen as it appreciated the most, gaining 1.31% on the Greenback. The price action is usually more substantial when a varied assortment of indicators, chart patterns, time frames, and oscillators all arrive at the same entry point.

EURUSD, bears have tried to decline the price, however bulls are slowly recovering it after the sharp fall. While bulls keep themselves above ex-resistance at 1.4444, look for buying opportunities. Above 1.4545 price level, bulls can initiate a positive trend.

The Loonie flirted with Dollar parity back in late October of 2009. However, the BOC stepped in and expressed its dismay over the Canadian Dollar strength, issuing harsh statements that a strong CAD would stymie the economic recovery. Shortly thereafter the CAD lost nearly 6.5%.

The EUR/USD is trying to escape the Bollinger Bands and the Full Stochastic the StochRSI is trying to follow. Only the RSI is still at it's centerline. The bad employment news for the dollar last week will allow these indicators to push this pair out the top of your monitor. Trade Balance news below is also not forecast to be helpful for the dollar's efforts to be a strong currency. A retracement happened yesterday and the 1.4500 area looks like it will last.

EURUSD bulls did show their strength by breaking significant resistance barrier at 1.4444 price level. Above this level, bulls are looking forward to extend their current movement. However, neutral situation is still active for this pair, no trend is established yet.

All aiming upward and each above the centerline, they are bound for a retracement soon. The upward climbing candle price action is also likely to support this. The EUR/USD is dancing in the clouds in the Full Stochastic, StochRSI windows and with the Bollinger Bands.

While the Forex Markets struggle to find direction to we thought it would be worthwhile to review S&R levels on the EUR and JPY versus the Greenback. We have mentioned in some of our recent pieces that when the markets move sideways we look for intra-day plays as volatility moves the market by 150+ swings a day, however, we never want to lose sight of the bigger picture.

Range-bound with it's price action, lets look at the four technicals for further wisdom from the black abyss of the forex. The Bollinger Bands and RSI request gently a move upward while the StochRSI counters that and the center-lined Full Stochastic is out for this one. The momentum for the most technicals seem to want to carry the price downward and that agrees with the trend. Hopefully the three hour charts will reveal something for a shorter term.

Investors are pondering this very question. Three weeks ago the answer was a resounding Dollar Bull. Just 9 months prior, though, the answer was an unequivocal, Dollar Bear. So what changed?

Bollinger Bands and StochRSI are riding high, while the RSI and Full Stochastics are in the mid-range. Price action does not reveal anything significant. A slight downward movement is the only thing the four technicals this EUR/USD's daily chart will reveal, how generous of them.