Forex Daily Forecast, Analysis and Prediction

The USD/CAD pair had a very strong showing on Friday, especially when you consider how strong it's been over the last couple of sessions. The fact that we barely pullback, to me shows quite a bit of strength.

The EUR/CAD closed Friday off as a Pin Bar Reversal at an area of previous highs & lows, 1.3775. The zone has been a turning point in the past, so will the pair turn bearish at this level again?

Begin your trading week with the recommendations from one of our expert traders, Chris. Check out the forecast for some of the major Forex pairs here.

The XAU/USD pair continued to sink and touched the lowest since September 19, 2010. Breaking below the April 16 low of 1321.52 triggered a sell-off which the Fed announcement on Wednesday had prepared the ground.

The WTI Crude Oil markets absolutely cratered during the Thursday session as the market opened with a massive gap lower, and Falling. All commodities around the world got whacked, and of course oil was going to be no different.

The EUR/USD pair fell like everything else. Measured in US dollars during the session on Thursday. However, we did see a bit of support near the 1.32 handle, causing a bit of a bounce by the end of the session.

USD/JPY rose during the session on Thursday, as the US dollar did fairly well against all currencies it seems. However, you can see that once the market plowed into the 98 handle, it found significant resistance and the market pushed back.

The GBP/USD pair fell during the session on Thursday, but as you can see found support down near the 1.54 level, and bounced enough to close back above the 1.55 handle, this resulting hammer of course is a very significant sign of bullishness, as it shows how much support there really is below this area.

The XAU/USD pair (Gold vs. the American dollar) fell precipitously after Federal Reserve President Ben Bernanke said the central bank could reduce its asset purchases this year and end it in 2014 if the employment outlook shows sustainable improvement.

The WTI Crude Oil market initially tried to rally during the Wednesday session, but as you can see the $99.00 level offered far too much resistance. I have been suggesting for a while that resistance was deathly going to be strong in that vicinity, and extending up to the $100.00 level, as it is a large round psychologically significant number.

The EUR/USD pair tried to rally during the session on Wednesday, but as you can see the downtrend line that I have drawn previously from the weekly chart was just above, as was the 1.34 handle. Both of those offered enough resistance to keep the market from going higher, and then of course the last nail in the coffin was the comments coming out of the Federal Reserve during the session on Wednesday.

The GBP/USD pair fell rather hard during the session after initially trying to rally on Wednesday. The Federal Reserve meeting in minutes afterwards of course rattled the markets, especially when the Federal Reserve Chairman stated that the Federal Reserve may taper off of quantitative easing later this year, and more importantly be completely out of it by the middle of 2014.

The USD/CAD pair initially fell during the session on Wednesday, but as you can see bounced quite hard by the end of the day to test the 1.03 handle. This is predicated upon the statement coming out of the Federal Reserve meeting that suggested that the central bank will be out of the quantitative easing game by the middle of next year.

Shinzō Abe must be smiling today. The FOMC announcement yesterday was just what the Yen needed to kick start another bull run.

The EUR/GBP printed one of the largest bullish daily candles yesterday in about a month, but is this the start of a new Bullish movement or will we drift lower again and maintain the daily triangle formation?