Forex Daily Forecast, Analysis and Prediction

Last week produced a bearish candle that closed not far from its low. The action has broken below the S/R zone and has so far been unable to break back above 1.3440.

Gold prices continued to decline yesterday and hit the lowest level in four weeks. After falling 4 sessions in a row, it appears that the XAU/USD pair found some support at the 1261 level during today's Asian session.

Last week printed a bullish reversal bar, closing near its high. This is a bullish sign, but there is of course the long-term bearish triangular trend line converging with the psychologically key number of 1.0500 blocking the way, and this has held as resistance so far.

The AUD/USD pair went back and forth during the session on Monday, hugging the 0.9350 level. The area is the beginning of the massive supportive area down to the 0.93 handle.

The USD/JPY pair initially fell during the session on Monday, but bounced enough to form a hammer by the end of the day. The resulting candle suggests to me that the markets want to go higher soon.

The GBP/USD pair went back and forth around the 1.60 level on Monday, essentially proving that the area is a “magnet” for price. The candle isn’t that exciting either, as it is very neutral.

The EUR/USD pair rose during the session on Monday, shooting back above the 1.34 level. The area leads the way back to the 1.35 level, an area that was once significant supportive, which should be resistive now as well.

The WTI markets fell during most of the session on Monday, but bounced in order to form a hammer by the time the markets closed. This of course is a supportive sign, and therefore I think this market is trying to build a bit of a base in this general area to bounce to perhaps the $98.50 area.

The XAU/USD pair continued to sink during yesterday's session and closed the day at $1282.57 an ounce, the lowest level since October 16. There is no doubt that U.S. non-farm payrolls figures were better than forecasts.

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

Last week’s candle just broke last week’s low by a few pips, then rose weakly, closing in the lower half of its range. It is an indecisive candle, showing that despite the strong support, the price has been unable as yet to rise with any real strength.

The AUD/USD pair fell during the session on Friday, as it remains below the 0.95 handle. That being the case, the market looks like it's basically being held underneath that level, which of course is very resistive.

The GBP/USD pair fell hard during the session on Friday, mainly in reaction to the nonfarm payroll numbers coming out of Washington DC much stronger than anticipated. The market did close back above the 1.60 handle, which of course is interesting to me as the move to the US dollar wasn't quite enough to break this pair down.

The USD/CAD pair rose in reaction to the nonfarm payroll numbers coming out on Friday, which generally favors the US dollar when employment numbers look good.