Forex Daily Forecast, Analysis and Prediction

Dear reader, based on recent trades, the EUR/USD pair has formed a short-term descending triangle pattern, characterized by lower highs connected by a falling resistance line and a flat support base around the secondary psychological level of 1.1650. The price is currently testing the triangle's resistance level, and it may see another decline toward the base. Continued selling pressure could lead to a bearish trend, while an upward breakout could lead to a rise equivalent to the pattern's height.

The US dollar has gapped higher against the Japanese yen to kick off the trading session here on Monday after the surprise results of the Japanese national election. That being said, I don't put a lot of faith into these types of moves. Historically speaking, at least I should say that I don't chase them.

The US dollar has initially fallen against the Canadian dollar to kick off the week on Monday but turned around to show signs of life again with that being said I think you've got a situation where traders are going to continue to be very uh cautious but I also think that short-term pullbacks probably offer buying opportunities that people are willing to get involved at the 1.39 level below should end up being support, just as the 1.40 level above should offer resistance. I think at this point, we're trying to determine whether or not we can actually take out the 1.40 level. Breaking above there opens up a move all the way to 1.4250, and I think that eventually happens. Quite frankly, the economic data in Canada is horrible. They actually lost jobs in August, and at this point, despite the fact that the Federal Reserve is likely to cut rates, let's be honest here.

Gold continues to rally during the early hours here on Monday. As it looks at this point time, we're going to do everything we can to get to the $4,000 level. The last couple of months have been extraordinarily bullish, and we've barely had a pullback. Keep in mind that we had initially broken above a significant ascending triangle in the beginning of September and it's basically been straight up in the air since then. The $4,000 level will of course offer a certain amount of psychological resistance but there's nothing particularly special about it. One would think that there's a lot of options barriers there so it's not a huge surprise to see that we're struggling to just simply slice through it. We gave back some of the games early in the day.

The euro has initially fallen during the trading session here on Monday to break down to test this crucial uptrend line. That being said, it does look like they are at least trying to save the euro in early trading. A lot of things are going on in this chart that you may or may not be aware of.

The German index initially fell a bit during the early hours here on Monday, only to turn around and show signs of life. By doing so, it looks as if the market is going to do everything it can to eventually break out above this resistance barrier in the form of 24,500 euros.

The US dollar has rallied a bit during the trading session here on Monday, showing signs of strength yet again. However, we did find a bit of difficulty at the 18.5 MXN level, which is an area that is starting to become very familiar for traders. It was previously significant support, and now it is offering significant resistance. By doing so, it looks like the market is going to continue to be very noisy and very cognizant of this area, so I think you need to pay close attention to 18.5 MXN going forward, as it has already proven itself multiple times, and now we have a massive downtrend line as well as the 50 Day EMA hanging around the same area.

The US dollar has been slightly negative during the early hours on Monday, as we continue to see a lot of volatility in the Forex world. That being said, it’s likely that we are looking at this through the prism of a major barrier above trying to be broken, in the form of the 1.40 level. The 1.40 level is a massive barrier to overcome, and I think at this point in time, if we were to break above the 1.40 level, it’s likely that the US dollar would really take off.

Meta gapped lower to kick off the trading session on Monday, as we threatened to test the $685 level. The $685 level is, of course, an area that’s been important multiple times, and now it’s starting to attract the 200 Day EMA indicator. The 200 Day EMA typically will determine the longer-term trend. I think you have a situation where traders are likely to turn around and are going to continue to see plenty of value in this region, as we try to continue the overall uptrend.

The British pound has rallied again during the early hours on Monday as we continue to see plenty of support near the 1.34 level. This is an area that continues to be noisy overall, and therefore it is worth noting that the market is essentially hanging around in the same range that we have been in for a while, therefore I think we need to determine whether or not we are going to make a bigger move.

Bitcoin rallied again during the trading session on Monday, as we are now well above the $125,000 level. The $125,000 level is a large, round, psychologically significant figure that caused a bit of a headache over the weekend, but ultimately, I think we’ve got a situation where Bitcoin continues to go higher. If we pull back from here, the $120,000 level is a potential support level, followed by the $117,000 level, as it has been important multiple times.

The GBP/USD exchange rate held steady on Tuesday as traders focused on the happenings in the United States, which is going through a government shutdown. It was trading at 1.3485, up from last month’s low of 1.3320.

The EUR/USD exchange rate remained under pressure as investors reacted to the new developments in France and as they waited for the upcoming statements by top Federal Reserve officials. It was trading at 1.1710, a few points above Monday’s low of 1.1650.

Bitcoin price rose for six consecutive days and reached a record high as its role as a safe-haven asset continued. The BTC/USD pair jumped to a high of 125,715, up by 16% from its lowest level in September and 70% above the year-to-date low.

The AUD/USD exchange rate moved sideways on Tuesday as the forex industry remained muted. It was trading at 0.6620, up from last week’s low of 0.6520. It is hovering near its highest point since September 18.