Forex Daily Forecast, Analysis and Prediction

Just last week the GBP-CHF touched 1.4108, another all time low. This pair has been in bear market for, well, years now, with the current main price swing starting in 2007, from the high of almost 2.5000.

The EUR-USD has been in a strong uptrend since the beginning of the year, advancing from 1.2872 to 1.4939.

One of the more underappreciated currency pairs is the CHF-JPY. Under most circumstances, it does not move as much as many others, since both the Swiss Franc and the Japanese Yen often serve the function of “safe havens” and tend to move in unison.

Last week’s sell off in commodities had a similar effect on some of the currencies. In particular, the Australian, Canadian and New Zealand Dollars lost ground. The biggest beneficiary was the US Dollar, for once, but a few other currencies also registered smaller gains.

Financial markets have reversed directions this week. Not just currencies, but stocks and commodities as well. The volatility increased, dramatically in many cases. The question is, are these moves just corrections, or reversals?

The USD-CAD currency pair has been in a prolonged down trend. Since late last year, the price the price has been under the parity, an important psychological level, without much of a correction.

A few currencies have been clearly standing out during the past few weeks. The Australian Dollar and the Swiss Franc are the strongest among the major currencies.

While not grabbing any headlines, the EUR-GBP pair has been in a nice uptrend. Since the beginning of 2011, the price advanced from 0.8282 to 0.8936.

In mid March, the USD-JPY fell to a lowest level ever at 76.12. After that, we had a joint intervention by central banks of the G7 group, which pushed this pair to 85.52.

After spending couple of years in a downtrend, the British Pound had finally rallied against the Japanese Yen following the joint G7 intervention in that currency.

The bull market in the Australian Dollar seems to be without end. Massive rallies in most of its pairs, some making all time highs (yet again), with the AUD-USD getting the most attention.

The GBP-CHF pair is once again testing the all time low. About three weeks ago, it seemed that this cross might be on the verge of reversing the long-term downtrend, but the price collapsed again, falling to 1.4301.

EUR fell sharply in early Japanese trading today, but the decline was short-lived and the single currency is back at the 1.4570 level.

The Euro has entered into a small consolidation since its last week's top, but as long as the prices hold above the 1.4515 level, the hourly chart remains bullish and further gains are expected later today and tomorrow.

A weak uptrend in this currency pair is visible, largely because the prices have pulled back further for the past week and are now close to the 100-day moving average.