Forex Daily Forecast, Analysis and Prediction

The Chinese yuan continues to threaten a break below the 7 handle, something that could kick off a cascade of selling.

The Euro drifted a little bit lower against the US dollar again on Tuesday, trying to find a way to rally through the massive 1.18 area.

The USD/RUB is near the 79.4900 realm as of this writing with extremely low trading volumes taking place as the New Year’s holiday starts to come into effect.

The Euro rallied slightly in early Tuesday trading, as we have seen multiple days in a row.

The USD/SGD is near 1.28580 as of this writing, this as Forex markets begin to see volume disappear and even day traders who constantly feel the need to pursue opportunities understand very little is happening in the marketplace.

The US dollar has been choppy against the Japanese yen during trading on Tuesday, as we are simply flailing about trying to find some type of momentum.

Bitcoin has rallied slightly in the early hours on Tuesday as we continue to see a lot of choppy sideways behavior.

Choppy trading is likely today due to low liquidity and several support and resistance levels located close to the current price.

The US dollar has risen against the Canadian dollar again on Tuesday in what looks like it's going to end up being a bit of a turnaround

Silver rallied a bit during the early hours on Tuesday to fight back against the massive selling pressures of Monday.

The GBP/USD exchange rate pulled back on the last trading day of the year as the recent bull run faded. It also pulled back after the Federal Reserve published minutes of the last meeting. It dropped to 1.3450, down from this month’s high of 13535.

Bitcoin price remained in a tight range on the final trading day of the year, capping a year in which it underperformed other assets like gold and the stock market. The BTC/USD pair was trading at 88,340, down by 30% from its highest level this year.

The AUD/USD pair remained in a narrow range and was hovering at the highest level since October last year. It was trading at 0.6700, much higher than the year-to-date low of 0.5914.

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With inflation and inflation expectations uncomfortably high, the potential for an interest rate cut by the US Federal Reserve, and geopolitical risks rising, investors should consider Gold and Gold stocks, with this precious metal trading at all-time highs.