Forex Daily Forecast, Analysis and Prediction

Wall Street closed the worst week since the beginning of the year and we see more signs for a possible bearish correction. NASDAQ was the only index among the three major that closed on the green territory on Thursday, mainly because, once again, Apple.

Take a look at where the major currencies like EUR/USD and AUD/USD should be heading this week, and plan your weekly Forex trading smartly.

The US Dollar has been gaining on the Swiss Franc since making a higher low at around 0.9005 last week with only a slight pullback on the Daily chart occurring last Friday, when most markets were closed and the US released some slightly better than expected numbers in unemployment claims.

The pair is one of the most followed, and the Dollar on the whole is measured by the market. The Dollar is enjoying a bit of a strengthening overall, and the Euro is the brunt of bearishness by traders.

The GBP/USD pair tends to be risk sensitive, and as the markets have found much to be concerned about, this makes the uptrend even more impressive. The recent bullish move to the 1.60 level was repelled though, and at that point I thought that perhaps we would see a bit of a fall.

The AUD/USD pair is without a doubt one of the favorites for the trading community to express a bullish view on global growth, with an emphasis on Asia. The Chinese economy can have an effect on the value of the Aussie dollar, as the Australians export so much to that country.

The EUR/USD pair continues to fall as the Thursday session was just another fall in value for the common currency.

EUR/CHF is probably one of the most boring, yet talked about markets in the Forex world at the moment.

The USD/JPY pair has been grinding sideways for some time now. The last couple of weeks have been a back and forth move.

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The US stock markets closed the trading day with sharp declines of more than 1%. The "excuse" for the declines was the mixed economic data, but the true reason is that the stocks are overbought and even if the markets continue rising, we will see more and more bearish days along the way, until the stocks surrender and start a significant correction of a least 5%.

The EUR/USD pair has been beaten up pretty severely over the last few sessions, and it appears the bears are finally starting to reassert control in a pair that seems to be somewhat impervious to gravity at times. The problems in Europe seem to have been put to the back burner lately, but it is obvious this is no longer true.

The cable pair has been absolutely whacked since the 1.60 level turned around the buyers. The Federal Reserve released minutes that made no real suggestion of quantitative easing going forward, and the Dollar gained against most other currencies as a result. This pair was of course no different.

USD/CAD is a tricky pair at times. I think this is because by nature, most traders like momentum, and this pair typically grinds. The two economies are far too interconnected to think that there can be a one way run for long, although over time the pair has fallen.