Forex Daily Forecast, Analysis and Prediction

The EUR/GBP pair has been stuck in a range roughly between 0.8650 and 0.8850 since the middle of July and has come close to breaking out of its box a half dozen times. But today we have what I think is the best chance yet with a 150 pip bearish engulfing candle formed off of resistance at 0.8800.

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Today the EUR/USD looks very similar to how it looked yesterday. the price is just above what has been a very strong line of support at the very powerful psychological level of 1.4.

GBP/USD still has a very bearish appearance to me. Speed and momentum appear to be very strong to the downside.

EUR/GBP continues to look very bullish to me. Price continues to make higher highs and higher lows, shorter term ema's are crossing through

Taking a look at EUR/JPY pair we are obviously in a period of consolidation and we continue to be range bound.

The Aussie has been very bullish but it looks to me like this uptrend is beginning to stall out a bit.

Today's daily candle chart for the Aussie formed a strong bullish engulfing candle closing above the former resistance zone at 1.569.

The kiwi is trading higher today after bouncing off its 100-day MA yesterday around 0.8230. Looking closer at a 1H chart, we are waiting for an inverted head and shoulders pattern to complete around 0.8260.

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Looking at the weekly it appears that price is setting up for continuation to the upside. The weekly Stochastic is in the trade zone crossing up.

I am seeing some evidence that the USD/JPY may become a bit bullish since the USD/JPY recently double bottomed just above the weekly M3, a bullish sign to me which points to JPY weakness with this pair, and of course in my EUR/GBP review I did point out EUR weakness and I have recommended EUR/USD shorts.

Looking at the 4 Hour chart we are at the 38.2 Fib zone of the recent fall for this pair, overlapped with the 55 and 144 ema's just above price. Also note that the upper Bollinger band is pointing downward.

On the daily chart the Stochastic is inside the oversold zone and outside of the lower Bollinger Band and quite a distance from all its emas. Get the full analysis here.

Due to yesterdays negative CHF CPI report the USD received a lot of strength so today we see a rather strong USD. If you take a look at my review of the EUR/GBP you will read that I am bearish on that pair which translates into EUR weakness.