Forex Daily Forecast, Analysis and Prediction

The USD/JPY pair gapped higher at the open on Monday, and then turned back around to fill that very gap. This is classic technical analysis, and normally means that we are continuing to go higher.

News emerged over the weekend that Bitcoin exchanges would now allow trading in other currencies, which would help in provide it with higher liquidity and more credibility, while providing entry for a new slew of traders.

According to the analyses of the AUD/USD and USD/JPY pairs, trader profited on a binary options platform. See how here for October 20, 2014.

The WTI Crude Oil markets have been ruthlessly sold off over the last couple of months. That in itself isn’t anything new or newsworthy, but the fact that the bounce could produce anything close to an extended gain shows just how much trouble there is in the oil market.

The EUR/USD pair has recently tried to gain strength after falling all the way down to the 1.25 handle. However, the market could not keep any of the gains above the one point to a level, and for me that is very important as I have identified the 1.28 level as the beginning of a significant amount of resistance that extends all the way up to the 1.30 handle.

The USD/JPY pair broke higher during the course of the session on Friday, clearing the top of the hammer that informed on Thursday. What is most important as far as I can see on this chart is the fact that the Wednesday candle slammed into the 105 level, but failed to break below it.

The AUD/USD pair failed at the 0.88 level on Friday again, and this only in my opinion strengthens the idea of the Australian dollar continuing to lose strength.

The USD/CAD pair tends to be rather choppy in general, and the most recent action certainly will do nothing to dissuade traders from thinking so.

Get the USD/JPY Forex signal for October 20, 2014 here.

Get the EUR/USD Forex signal for October 20, 2014 here.

Check out the Forex forecast for some of the major currency pairs for the week of October 20, 2014 here.

Gold weakened against the American dollar on the back of upbeat U.S. economic data. According to the latest figures released by the Federal Reserve, industrial production advanced 1% in September.

The EUR/USD pair initially fell during the session on Thursday, as the market reenter the previous consolidation area. The fact that we fell below the 1.28 level of course was a fairly negative sign, and something that I had anticipated seeing.

The AUD/USD pair fell during the session initially on Thursday, but found enough support below to turn things back around and form a nice-looking hammer.

The XAU/USD pair (Gold vs. the American dollar) had a positive day as disappointing U.S. economic data and continued volatility in the global equities markets increased desire for safe haven diversification.