Forex Daily Forecast, Analysis and Prediction

Gold showed signs of exhaustion near the $4,200 level, with traders eyeing a pullback—possibly toward $4,000—as a healthy reset within a strong uptrend.

The euro continued to show weakness against the US dollar on Tuesday, with key support at 1.1550 in focus as bearish momentum builds below 1.16.

The US dollar extended gains against the Canadian dollar on Tuesday, breaking key resistance as a looming golden cross and economic headwinds boost USD momentum.

Amazon is poised to open near the key $215 support zone, offering a possible bounce opportunity as broader market sentiment and US-China trade tensions weigh.

You can see that we have gapped higher to kick off the trading week on Monday as you would expect now that the bat between the Americans and the Chinese might be over. We just don't know. We've actually seen a calming of tensions from both sides. So that's a good sign. I think basically, what you have here is a continuation of what we’ve seen. And now we're starting to focus on Japan again. That of course is because light monetary policy, loose monetary policy is probably coming. And that means yen printing in colloquial terms, we had broken above the 151 yen level an area that I had talked about for a while, and we've turned around to show signs of life, all things being equal.

The US dollar has rallied a bit during the early part of the session on Monday, as we are breaking above the 1.40 level. The market has been very important. All things being equal, we had recently been consolidating between the 1.37 level and the 1.39 level but broke out of there, we tested 1.39 for support and we have continued to go higher. The 1.40 level is likely to be an area where I think we now might see a bit of market memory and perhaps possibly a little bit of a floor we'll just have to see the 50 day EMA is starting to get ready to cross above the 200 day EMA kicking off the so-called golden cross. And that of course is very bullish for longer term traders. So that'll be interesting to see how that plays out. I still think that the dollar is eventually going to find its way to the 1.4250 level and the interest rate differential means that you get paid at the end of every day. So, keep that in mind as well.

The US dollar has rallied a bit against the Swiss franc during the early hours here on Monday, as we see a little bit of a recovery after the Friday shock of the US Chinese problems. That being said, I think this is a situation where we continue to see a bit of a base building pattern. I think this is very important to watch, quite frankly I think you have a scenario where we just formed a little bit of a double bottom and we are mostly positive over the last couple of weeks, especially after this hammer on September 17. So the question is, can we break above this resistance barrier? There is a barrier that has been both support and resistance right around that 0.81 level. It looks like we're trying to take that on.

Ethereum has shown itself to be a little bit of a mixed picture during the trading session on Monday after what had been a very big Sunday once it became a little bit obvious that perhaps the Chinese and US tension was going to drop a bit. But I'd point out that we are struggling with the 50 day EMA. If we can break above the $4,300 level, then we could go higher. That would clear the 50 day EMA. But right now, we're basically stuck between the 50 day EMA and the 200 day EMA indicators, but we are above the $4,000 level, which is a large round psychologically significant figure. Looking from a structural standpoint, you can make the argument that we have made a lower low, a similar high and even lower low. So, the question is, are we going to make a lower high? And I think that's going to be the question here in this market. Keep in mind, Ethereum is not Bitcoin, meaning that we are not going to see uh traders looking to perhaps uh jump into this right away like they do with Bitcoin. But I believe ultimately, you've got a scenario where Bitcoin must break to the upside to drag Ethereum right along with it. I do believe that the real prize at the moment is $5,000. But that's going to be difficult, I think, to achieve in the short term.

The light sweet crude oil market has been bullish during the trading session here on Monday as we continue to see a lot of volatility. Of course, some of that selling on Friday would have been fear over the U.S. Chinese trade situation and the tensions picking up. Now that it seems like it's abating a bit, it does make a certain amount of sense that we rally in order to get a bit of a relief rally.

Over the weekend, we have seen tensions between the United States and China ease a bit, and that has helped many stocks around New York recover, including Tesla. Tesla got eviscerated on Friday, dropping from $440 down to $414 rather quickly. This of course has a lot to do with the exposure of Tesla in China, and the idea that perhaps some of those rare earth minerals that were being debated could come to haunt Tesla as it needs many of them for the chips that the cars use.

Natural gas has initially fell during the trading session on Monday, with the idea of reaching down to the $3.00 level below. This is an area that obviously is a large, round, psychologically significant figure, and an area that I think will continue to attract a certain amount of attention. After all, as we started the November contract, we gapped above the $3.00 level and shot straight up in the air toward the $3.60 level. Because of this, I am very interested in natural gas at the moment as I think we have a real shot at a bit of a bounce.

The German index gapped to the upside during the trading session on Monday, as it looks like we are threatening the €24,500 level, an area that’s been resistance multiple times previously. All things being equal, this is an index that I do anticipate will continue to go higher over the longer term, but I also recognize that there are some questions about risk appetite at the moment that will continue to be a major issue.

The British pound drifted a little bit lower during the trading session on Monday, as we continue to see the US dollar put up a fight against most currencies. This is a particularly interesting currency pair for me due to the fact that the British pound has been resilient against the United States dollar in comparison to multiple other currency such as the euro, Canadian dollar, and many others.

Bitcoin went back and forth during the trading session on Monday, as we continue to see a lot of questions asked of crypto at the moment, especially as the Friday session was so horrific. At this point, the market is likely to continue to look at the 50 Day EMA with suspicion, and if we continue to struggle in that area, I think it makes a certain amount of sense that we hang out in this area.

A new all-time high has been recorded by the gold price index today, Tuesday, October 14, 2025. According to gold trading platforms, spot gold prices rose to the resistance level of $4180 per ounce, a new historical record for the gold trading market. The positive momentum for gold bulls was further fueled by increasing trade tensions between the world's two largest economies, the United States and China, which has increased investor demand for safe-haven assets, primarily gold. We have previously mentioned in gold's technical analyses that these tensions are one of the most significant drivers of gold's strength, thus setting the stage for new record-breaking bullish breakouts, despite all technical indicators reaching extreme overbought levels.