Forex Daily Forecast, Analysis and Prediction

Yesterday Euro/Dollar attempted to make an upward correction to the 1.3033 top, but closed lower at 1.3004.

Last week Euro/Dollar made a moderate movements and traded within the 1.2985 - 1.2897 range. On the weekly chart the European currency failed to develop growth and detained under the line of middle term decreasing trend, located at 1.2980.

USDJPY stays in the falling price channel and remains in downtrend from 101.43. As long as the channel resistance holds, we’d expect the downtrend to resume and deeper decline is still possible to 97.00-97.50 area.

The dollar fell versus most other key currencies on Tuesday as risk appetite increased after Treasury Secretary Timothy Geithner said the “vast majority” of US banks are well capitalized. The yen fell as the Dow rose 128 points to 7,970.

EUR/JPY falls further to as low as 126.07 and is now pressing mentioned 126.40 support.

GBPJPY dives further to as low as 141.48 and recovers mildly after drawing support from the near term rising channel.

EUR/USD (a daily chart of which is shown) continued its expected bearishness for most of the past week after rising during the beginning of the week to approach once again the long-term downtrend resistance line extending from the second test of 1.6 back in July.

AUDUSD remains in short term downtrend from 0.7322. Deeper decline is expected to test 0.7032, a break below this level will suggest that the rise from 0.6284 (Mar 4 low) has completed at 0.7322 level already.

EURUSD breaks below 1.3089 support and the fall from 1.3738 extends further to as low as 1.3017 level. Deeper decline is expected to 1.2750 or even lower.

by: iForex.bg
On Friday Euro/Dollar made an insignificant upward movement. After breaking the key resistance level at 1.3450, the currency pair reached a peak at 1.3488 but closed lower at 1.3479.

After brief retreat, the greenback is regaining momentum today on talk of bankruptcy of GM and Chrysler. There are rumors that US President Obama believes a quick, negotiated bankruptcy is the most possible way for GM to restructure.

EUR/USD 1.3232 - 30 March EUR/USD Open 1.3265 High 1.3588 Low 1.3206 Close 1.3584 Euro/Dollar climbed to the 1.3588 level on Friday morning, after which sharply decreased as expected with over 350 pips, which is a prerequisite for downward trend with targets towards 1.3100, followed by 1.3025.

The Dollar is looking strong verses the Yen and looks to be forming a bull flag that could move to the upside with a target of a previous resistance level of 99.00.

Weakness of the Dollar continues to grow as the Euro gained over 700 pips for the last 3 business days. The currency couple broke the resistance at 1.3650 - which is 51.8% Fibonacci correction of the wave 1.2461 - 1.4713.

The FOMC made the announcement yesterday that they would be buying $300bn in US Treasuries and $750bn mortgage backed securities. They maintained the Interest Rate at 0-0.25% whilst CPI (Feb) gained 0.4% as expected. The USD was beaten after the FOMC announcement dropping over 2%.