Forex Daily Forecast, Analysis and Prediction

AUD/USD formed a bullish hammer candlestick near key support after dovish Fed and neutral RBA signals, suggesting a possible rebound toward 0.6600.

The support level above at $1.1627 is looking extremely pivotal, after bulls break out above a symmetrical descending price channel, and a bullish head and shoulders pattern breaks its neckline.

The British pound bounced from its 200-day EMA on Tuesday, offering a key technical support zone as the pair trades between major resistance and support levels.

USD/CHF remains rangebound near 0.80, but a breakout above 0.81 could trigger a bullish swing trade setup targeting 0.86 amid broader dollar strength.

Silver faced strong resistance at $50 on Tuesday, with high volume and a bearish candlestick suggesting a potential pullback as speculative interest peaks.

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.