Forex Daily Forecast, Analysis and Prediction

EUR-USD is rising after touching channel support at the 1.43 lows. It has been trending up quite strongly but has now reached resistance at 1.4430 from a combination of the monthly pivot and the point and figure count on the 0.0005x3 chart.

The New Zealand dollar has been surprisingly strong recently. After lagging behind the other commodity currencies, the NZD surged forward during the past two weeks, appreciating broadly. In case of the NZD/USD, this rally reached 0.8262, which is a new all time high for this pair.

All of the Euro pairs have been on a rollercoaster ride of late. The on again, off again sovereign debt fears in Europe have been playing havoc with the common currency. In case of the EUR-JPY, since early March the price rallied from 106.60 to 123.30, only to collapse about 1000 pips and set a low 113.39.

During the last few weeks, the Canadian Dollar started to lose some of its luster. After posting steady gains in relation to the US Dollar, the CAD became significantly weaker, shedding almost 400 pips – the USD-CAD rallied from 0.9440 to 0.9817.

Recently, the EUR-CAD pair has been one of the better examples of the uncertainty in the markets. Important fundamentals have been shifting dramatically in a relatively short time span, causing sharp turns in prices. That is true for most currencies.

The Euro has rallied strongly for the past day or so, but that does not make the hourly chart bullish yet.

The USD-JPY rallied in March from the all time low of 76.12 to 85.82. Within the most recent price history, this is the dominant swing, one defining critical support/resistance levels. Those must be broken before new trend gets under way.

The Australian Dollar has become one of the most popular currencies to trade. Its volume increased dramatically during the past couple of years, making it as liquid as the so-called "major."

The Swiss Franc remains one of the safe havens among currencies. It just keeps getting stronger, especially against the US Dollar. The long term down trend continues and the price has set a new all time low at 0.8551 about 2 weeks ago.

Like most of the Japanese Yen pairs, the EUR-JPY is not very clear about what to expect next. Following the intervention in the Yen couple of months ago, the price rallied strongly to over 123.00.

After reaching a twenty-year high at 1.3789, the Australian Dollar-New Zealand Dollar pair has settled into a consolidation period.

The hourly trading chart for this pair continues to be quite choppy.

The past few weeks have been unkind to the commodity currencies – all of them lost ground following sell offs in metals and energy sectors. These currencies rebounded few days ago but are drifting down again and not just in relation to the US Dollar. They are getting weaker broadly.

The British Pound has advanced strongly against the US Dollar. From a low of 1.5344 at the start of 2011, the GBP-USD rallied to as high as 1.6745 about two weeks ago. Since then, however, the price has been drifting down.

In case of its relation to the US Dollar, the AUD has been in the all time high territory, climbing to as high as 1.1011 in early May. That level proved to be a strong resistance.