Forex Daily Forecast, Analysis and Prediction

The EUR/USD begins its week just below the 5 ema on the weekly time frame. Price will more than likely need to head up a bit to make contact with the 5 ema so that it can continue downward.

The EUR/GBP appears to me that it is on its way upside. On the weekly time frame the 5 ema has flattened out and price seems to be pushing above it. On the daily time frame the 5 ema is beginning to cross above the 13 ema.

Up until last week the Euro had been Bearish for a month with 4 weekly candles in a row closing lower than they opened. Last week the Euro closed higher than it opened, but not by much. The last time the Euro was at this price level, it sparked a 4 week bullish run, so are we going to see this happen again?

Yesterday price action was very wild. The daily candle ended up as a spinning top. It has been a wild week due to all the ECB action. Currently we are around 5 hours before the Non-Farm Payroll report and until that release the market action will be minimal.

I begin my analysis today for the Swissy on the daily time frame. The 5 and the 13 ema's are very close to each other at this point and the stochastics is in the overbought zone crossing down and out I see that this pair may soon start to head on down.

Yesterday the EUR/USD did not have any real extraordinary price action. I knew that would be the case after the big move the day before that and topping it off the same week of the Non-Farm Payroll report and also the fact we are in the month of December which does go without saying that it is a vacationing month.

I will start with the daily chart for the EUR/JPY to begin my analysis today. I hate repeating myself too much but in the event you haven't read my analysis on the other pairs I cover I have been stating that today and in just a few hours the Non-Farm Payroll report will be released and it is the last report of the year and just around the Holiday Season, in anticipation of the report not much trading will take place.

It has been quite a week for this pair mostly due to the actions of the ECB. Price came all the way down to the weekly 144 ema then all the way back up to the weekly 5 ema. At this time, the weekly candle is a doji.

The EUR/USD pair looks to continue the back and forth motion as the debt crisis churns on. The pair has seen quite a bit of support in the 1.31 – 1.35 area over the last two months, and every time this pair reaches that area – it gets a bounce.

The Kiwi, or NZD/USD has been basically Bullish since March 2009 when it hit a low of 0.48939. It reached what appeared to be the end of its bullish run in July of this year, cresting at 0.88415 and falling immediately after.

Wall Street jumped yesterday over 4% in a rally that you see only after outstanding news or sharp declines. In this case, there is not any encouraging news in the horizon, so the reason for the sharp risings is the short-squeeze phenomenon.

The GBP/USD starts it's day off in a very bearish position, but it is a mixed bag. This pair has made a perfect fib of the last move down to the 50.0 level which was overlapped by the 55 ema almost as well as the 21 ema.

This pair is a tough read for me today. Based on correlation I am bullish for this pair, however, the technicals are looking bearish. Since yesterday the market has been very unpredictable, and with the Non-Farm Payroll coming out on Friday the market will behave in strange ways.

Starting my analysis of the EUR/USD I will begin with the weekly time frame. It looks bearish, but I not bearish on this pair because I am bearish on the Swissy and these two pairs are almost exact reciprocals of each other.

Yesterday this pair made a big leap, of course it had very little to do with the technicals and had everything to do with the fundamentals.