Forex Daily Forecast, Analysis and Prediction

The prices declined to as low as 81.81 but then bounced back slightly. However, this bounce was nothing else than an oversold bounce and it didn't change the hourly trend: it remains strong downtrend.

EURUSD has risen above 1.3200 level and thus it appears now that a base has been built below that level. And that shifts the hourly trend on the upside. The larger degree picture though is still not very clear and actually as long as the 1.3280 resistance holds, the daily chart is more negative than neutral.

The market rallied on Friday slightly to 1.5475 and then pulled back again. This morning however it is once again trading near the important 1.5450 level. Thus, the hourly downtrend remains weak and actually it has weakened furthern compared with our last update.

The NZD-JPY has been relatively quiet recently. It is moving in rather narrow ranges, as compared to past few years and lacks direction. Long-term charts show a tepid market, undecided about the next major move. This could change soon.

The EUR-AUD has been in a downtrend since the financial crisis erupted in 2008. After reaching the all time high, this pair has been in a steady downtrend, perhaps better described as a free fall. The price seems to be making new lows constantly and reached yet another one on Tuesday at 1.3107.

The British Pound has been in a prolonged bear market against the commodity currencies. It has made numerous all time lows in relation to the AUD, NZD and CAD

The Australian Dollar has been slipping against the USD recently. Perhaps not as much as other currencies, but the selloff has been noticeable and steady. It is possible that some of the AUD crosses will experience corrections as well, at least in the short term.

One of the currency pairs, which do not get many headlines these days, is the USD-CAD. For a good reason – it is not moving much.

In the wake of the sovereign debt crises in Europe, the common currency has been under serious pressure lately. This is especially true in relation to the US Dollar and, even more so, against the Swiss Franc. In fact, the EUR-CHF made a new all time low on Wednesday, at 1.2757.

Trading in December is often more challenging than during other times. With major holidays approaching, many market players take time away from the markets, while others limit the size of their transactions.

The GBP-USD has been in an uptrend for a long time now. Since May, this pair rallied from 1.4300 to 1.6300. However, most of the gains were made in the early stages of this run. The later stages brought predominantly sideways move, with the exception of a brief period when the GBP-USD spiked up to 1.6300.

The Japanese Yen relation with the US Dollar has been the focus of currency markets for the last few months. The seemingly ever-stronger Yen prompted an intervention by the Bank of Japan. However, after the initial run up, the USD-JPY fell again, almost touching the all time low.

The Australian Dollar – New Zealand Dollar pair has been through a roller coaster ride this year. It had three major price swings over 1000 pips in magnitude. The bullish moves were capped at 1.3230 and currently the AUD-NZD is approaching this level again.

After a prolonged down move, the last couple of days brought a possibility of a trend change for the EUR-CAD.

Recent developments in Europe took its toll on the common currency. The Euro fell sharply in relation to most other major currencies, including the New Zealand Dollar. In less than a month, the EUR-NZD declined from 1.8700 to 1.7400.