Forex Daily Forecast, Analysis and Prediction

Following a week of extreme market volatility, the U.S. Dollar Index closed relatively unchanged against its major counterparts, as illustrated by most liquidly-traded currency pair (EURUSD) which remains locked in an astonishingly narrow 3.3% range since mid July. Get the roundup of all major currencies here.

Technical and fundamental analysis of EUR, USD, AUD and four other major currencies, all in one place.

This has been a very good week for the Euro. The common currency rallied first anticipating a positive austerity vote in Greece and then in response to it. All said, in last four days, the Euro advanced over 400 pips against the USD while also gaining on other currencies.

With the move above 1.4440, the hourly trend is now considered on the upside. Right now the market is overbought and some kind of a pullback towards 1.4425/20 can be seen later today but as long as the prices hold above 1.4340, the hourly trend remains higher and gains towards 1.4570 are seen. However, the upside potential is likely to be limited to there as the triangle on the daily chart from the May top does not look complete yet.

With the financial world focusing on Greece, it is of no surprise that the European currencies are among the most volatile now. The Euro responds sharply to every news release, while the Swiss Franc keeps making new all time highs against other majors, just as the Australian Dollar used to do only few weeks ago.

If you trade AUD/CAD, this signal is for you. And if you don't, use this free Forex signal as a chance to try out a new currency pair.

The British Pound is typically a rather volatile currency. Most of its crosses have large daily ranges and easily identifiable trends. The GBP/CAD is not much different with one possible exception – its very long-term chart shows a tight consolidation.

Take a look at technical and fundamental analyses of the major currency pairs side by side to get a look at where the market will be going in the days ahead.

Not that long ago the EUR/JPY was in a strong bullish mode. Following the G7 intervention to weaken the Yen, this pair rallied to 123.31, a large appreciation, considering that the preceding low had been at 107.65. Since then, however, things have changed dramatically.

So far this week, currencies have been behaving in a choppy manner. It seems like every economic news release caused a change in direction, lasting few hours, perhaps half a day, only to reverse again in response to the next announcement.

Expect a drop in this pair targeting 1.03000 minor waves (iii), (iv) & (v). Set a stop-loss just above wave B at 1.07817.

NZD/USD has completed major wave V. It broke the channel on a corrective wave ABC. What's up next?

Check out what one expert trader did for EUR-GBP - maybe the same position will work for you!

The commodity currencies have stalled their recent rallies. For the most part, the respective central banks have been hesitant about raising interest rates, something that market participants wanted to see. In addition, the renewed European debt crisis decreased speculative money flow into these currencies.

The recent volatility created by events in Europe is not visible in all currencies. While most of the currency pairs experienced price swings a little larger than normal, a few of the crosses have actually become less volatile and contracted sharply.