Forex Daily Forecast, Analysis and Prediction

EUR is one of those currencies which shows cycles, and the arrows mark out 3 different magnitudes of the same cycle repeating over and over again: a downtrend followed by a sudden rise.

The USD weakened a little more today after the FOMC's Fisher & Plosser expressed different views on the US economy's future. Fisher believes interest rates will need to be adjusted before 2013 while Plosser is optimistic that the US economy will grow 3% before the end of the year. This comes as good news to anyone who is bullish on the pound right now.

While in absolute terms there is no question whether the Australian economy remains in much better shape than that of the US. Even in relative terms, the US “recovery” is falling apart faster than Australia is decelerating.

GBP/USD signals based on Ichimoku (Kumo breakout). This signal is good for 2-3 days, so find out more now!

The Euro was confined to narrow ranges ahead of the US open on Monday with resistance close to the 1.43 level as investors remained tentative over conditions, but the currency then advanced strongly in the New York Session.

The Aussie has seen a positively bullish day. A strong session on local equities buoyed sentiment and assisted in underpinning the currency.

The NZD/USD pair has been very bullish for quite some time, and it appears that it will continue to be so in to the future. Weekly chart shows a long shadow or hammer , which has found support not surprisingly at .8300.

The pair remains in weak downtrend and since the market is now overbought and hourly oscillators are moving on to sell signals, another leg down may take place today.

A chart of EUR/USD recently looked just like my favorite roller coaster, which makes me think a downtrend will be seen for a while. The pair will likely hit 1.4085, so a sell might be in order.

Probably the best to way to enter short is if EUR makes a new intra-day high and there is a divergence between the price and hourly oscillators. Look for this action around the opening of U.S. stock market trading.

The Japanese Yen has rallied in the past three days, coming within 1.1 percent of its record 76.25 against the US Dollar reached in March, following the Standard & Poor’s downgrade of the U.S. credit ratings.

As expected GBP rallied to 1.6386 level on Friday. Earlier today it broke above this level and then this level acted as support.

After yesterday’s news in America, some people expect that a relative calm in the markets will be lived.

EUR/USD signal based on Fibonacci levels. Good for 2-3 days.

The EUR/USD , GBP/USD and USD/JPY downtrending on the Very Short-Term Trend