Forex Daily Forecast, Analysis and Prediction

There don't seem to be any significant events developing on the weekly or daily timeframes but the 4 hour timeframe has more to say. Get the full analysis here.

The US stock market is back from the Thanks Giving day with what seem to be as a happy mood, as indices are rising more than 2%. The reason why Wall Street is interesting to the forex trader is the fact that the USD has a negative correlation to the US stock markets, so it is necessary to monitor the major indices most of the time.

Earlier this month I wrote about the S/R zone of 1.5950 giving the Sterling some grief and predicted that if that zone broke we would see to the Sterling fall to 1.5630 or lower.

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The GBP/USD starts out the new day just below the daily 5 ema and price has been riding down the 5 ema almost daily I see this pair as nothing but bearish.

The EUR/JPY begins the new week below the weekly 5 ema. Price is spaced below the 5 ema so price may be expected to rise a bit to make contact with the weekly 5 so it can keep heading down. On the daily time frame price is spot on the 5 ema and price seems to be heading up a bit.

The Swissy begins its fresh week above the weekly 5 ema but slightly spaced a bit above the 5 ema it is possible for price to drift down just a bit before continuing on up and price is up against very strong resistance since .9300 has already held up as strong resistance a couple other times in the past.

The new week begins with price opening up way below the 5 ema and price made a rather large gap over the weekend, I expect after the gap fills price could head up a bit until weekly price makes contact with the weekly 5 ema.

The new week for the EUR/GBP begins with the new weekly candle just below the weekly 5 ema. This pair as been in a downtrend for the last and it opens up touching the 5 ema I think there is as a very good chance price will just keep falling.

Last week the Greenback had another relatively strong week against its northern cousin, the CAD (aka Loonie). After price broke and held above the strong weekly resistance level of 1.025, it was a good bet we were going to see a re-test of the 1.05 level, and possibly the October high of 1.0656.

The AUD/USD pair continued it’s slide the past week as traders worry about the debt crisis, and the apparent slowing down economically around the world. As the Aussie is so correlated with commodities, this pair will always fall when there are doubts.

The EUR/JPY continues to ride the 5 ema down on the daily timeframe. Lower Bollinger band is open and pointing down.

The GBP/USD continues to look bearish as ever. On the daily timeframe price has reached the 78.6 fib of the last move up and it has already pierced it.

The EUR/USD starts off right on support. It will be interesting to see what will happen since price is riding down the ema's very hard.

I will begin my analysis with the daily timeframe. Once again price begins its day at the 61.8 fib level around .8609 Price is also in a bit of a range between .8595 and .8620 .