Forex Daily Forecast, Analysis and Prediction

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Gold gained some ground against the American dollar during yesterday's session but the market is still feeling the bearish pressure of last week's U.S. employment report. Encouraging figures reinforced expectations that the Federal Reserve will taper or end its asset purchases.

The WTI Crude Oil markets fell during most of the session on Monday, testing the $95.00 level for support again. The level did of course hold, and as a result the bounce caused a hammer to appear for the daily candle.

The EUR/USD pair initially fell during the session on Monday, but as you can see the 1.32 level did in fact offer enough support in order to bounce the market higher, as we closed near the 1.3250 handle.

The USD/CAD pair fell during the session on Monday, piercing below the 1.02 handle. However, this is more of a "squishy" zone, and as a result eventually the market found support. The resulting support caused the market to bounce, and then therefore print a hammer for the day.

The USD/JPY market had a positive showing on Monday, after printing a bit of a perfect hammer for Friday. The candle on Friday touched the 95 handle, and then proceeded to bounce 250 pips in order to form a perfectly placed hammer.

The XAU/USD pair (Gold vs. the American dollar) ended the week with a loss and hit the lowest level since May 24. Prices failed to break above the 1420 resistance level during the Friday's European session and selling pressure increased after jobs data came in slightly better than expected.

The WTI markets initially fell on Friday, but recovered quite nicely and broke above the $96.00 level. The resulting candle looks a bit positive to me, but I have to admit that I still think that this market is currently in a consolidation area, and that the top of that is at the $97.00 area.

The EUR/USD pair tried to rally during the Friday session, but as you can see it pulled bank and formed a shooting star that sits just on top of the 1.32 level, an area that had been significant resistance that we broke out of on Thursday.

The USD/JPY pair fell during the session on Friday, smashing into the 95 level which of course is a major psychological barrier. The fact that we found so hard and regained 2 1/2 handles suggests to me that there is a ton of support below.

The USD/CAD pair fell during the Friday session after the nonfarm payroll numbers came out, and smashed into the 1.02 level. Within this chart, I cannot help but think that the US dollar may be on it back foot against the Canadian dollar, but I have also maintained that the 1.02 area is vital for the buyers to maintain.

Check out the weekly forecast for major Forex pairs like EUR/USD and more here.

Fundamentals seem more important than technicals for this pair today, but we're giving you both - only at DailyForex.com.

If we get a fairly strong jobs number there is the possibility that the market assumes that the Federal Reserve will taper off of its quantitative easing sooner, and this of course should drive the value of the dollar higher.

Going forward, it's going to be the Federal Reserve that determines this pair more than anything else. See what our experts have to say about this.