Forex Daily Forecast, Analysis and Prediction

The EUR/USD pair gapped lower during Asian Monday morning trading as the EU officials didn’t come to any type of conclusion for the ongoing Greek crisis.

The EUR/GBP appears to be caught up in a fib war. On the monthly chart it has fallen from the 61.8 fib from its recent swing down, but on the weekly it has bounced off the 50.0 fib of its recent move up.

The EUR/JPY continues to look bearish. Looking at the monthly chart price is riding the 5 ema after a recent fib from the break of the illustrated trend line.

The GBP/USD continues to look extremely bearish on the long term as well as the short term.

Based on Doug’s analysis of the EUR/USD, the strength of the USD creates an investment opportunity in the following positions: “Low” or “Below”, “Touch down” or “No touch” on the EUR/USD.

The EUR/USD made an all time high July 1, 2008, then it tanked. Ever since that time it has succeed to make a lower low and two lower highs.

Taking a look at the weekly chart price has already met up with the weekly 5 ema and the 13 is crossing the 21 ema. Looking at the daily chart price is also againt the 5 and 13 ema's and the 21 and 233 is much further above.

The EUR/JPY continues to look extremely bearish. On the weekly chart it is coasting down the 5 ema with the 13 ema stepping in each time the 5 is breached.

No matter how you look at it this pair is looking very, very heavy. Slight retracements are possible just enough to catch up with ema's.

Just as last week we find this pair propped just on the 55 ema, a very strong area of dynamic support. This pair is looking bearish to me because the 5 ema is not too far above price and the lower Bollinger Band is open and pointing down giving price permission to flow out to the down side.

On Friday we broke a price channel we the EUR/USD has been trapped to the upside and the price was touched by the daily 13 ema that caused the bulls to take profit forcing price back down.

The focus last week for markets has been on Europe but this will change in the coming week with theFederal Reserve gearing up for one of the most important FOMC meetings in along time.

With the housing data and FOMC details coming out of the USA this week, the US economy could be put on hold more or less until these statistics come out. The Canadian dollar, or Loonie as us Canucks call it, seems to have taken advantage of the situation and gained some serious ground on its southern cousin, the Greenback.

This pair finds itself caught up in between long term resistance and short term support. On the daily we have reached a 38.2 Fib to the downside overlapped with the 233 ema and the 5 ema pushing price down, yet the Stochastics is in the oversold beginning to cross up.

We start out this session within a very tight range for this pair. I have a feeling this range will soon be busted to the upside and I will expect bullish conditions for this pair.