Forex Daily Forecast, Analysis and Prediction

Currency: EUR/JPY Trend Expected Direction: Down Strategy: Elliott Waves and Fibonacci Trading.

Currency: EUR/USD Trend Expected Direction: Down Strategy: Elliott Waves and Fibonacci Trading.

The EUR/JPY sure was a wild pair yesterday. The total daily range was 108 pips yet price opened and closed within 3 pips of each other. On the weekly time frame price rose to nearly the 5 ema and fell.

Yesterday was an average day for the GBP/USD pair. Its range was around 126 pips. The weekly candle rose to the 13 ema then price dropped. The 13 ema is very powerful, especially on the larger time frames.

Yesterday the Swissy had a very volatile day. 150 pip range to be exact. Interesting when you think about it since last week's range was like 323 pips. On the daily time frame price came down and pierced the 21 ema and bounced high.

The EUR/USD had another highly volatile day yesterday. Yesterday's range was 174 pips, a very impressive day for this pair. Price tanked yesterday but before it tanked it rose and on the weekly time frame price rose to the 5 ema which is what made it tank.

Yesterday the EUR/GBP tanked. 73 Pip drop for this pair is a big range. Of course, this is no surprise since if you read my analysis yesterday I said it would drop, and it did. On the weekly time frame price finally made it down to the 233 ema as I knew it would sooner or later, after all, the 233 ema calls out to price.

Wednesday saw the European Central Bank release 489 billion Euros to over 500 banks at the benchmark rate of 1% for the term of three years in order to push more liquidity through the European banking system.

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In the schizophrenic currency markets of 2011, the Australian dollar has been particularly interesting as it has made several violent moves over the last 12 months, normally predicated upon a random headline coming out of Europe.

Yesterday's move up for the GBP/USD was very impressive. Yesterday's range was over 200 pips. The weekly candle has already poked above the weekly 5 ema.

Yesterday's very bullish day for the EUR/USD was very surprising to me since at the time I was writing my analysis it was in a very, very tight range and the previous day's volume was only half of what it normally is but yesterday's price action made up for all that since yesterday's range was around 140 pips, 20 pips more than the average day for this pair.

The EUR/JPY still keeps looking almost exactly like the EUR/USD but then this is expected since lately it has had close correlation with the EUR/USD and today both pairs are very closely correlated. Yesterday's rally up pushed the weekly candle up quite a bit getting it closer to the weekly 5 ema.

Yesterday was quite a down day for the Swissy. On the daily time frame yesterday's daily candle poked the 21 ema just a bit and that does not mean it will fall, it could just be a touch that will push this pair back up, however, the 5 ema is beginning to point down and looks like it could cross below the 13 and cave in on price forcing it down.

Yesterday was quite a day for the EUR/GBP. It took me by surprise since the volatility was very low and the market simply went from one extreme to the other. I think the big move yesterday was mostly due to fundamentals and Switzerland and the Swiss pairs were mostly effected.