Forex Daily Forecast, Analysis and Prediction

The Japanese Yen has been grabbing the headlines lately. Main reason – the long threatened intervention by the Bank of Japan. It targeted the 15-year low in USD/JPY, which, at that time, was at 83.00. This action managed to push the rate to 85.90 in a short order.

On this weekly chart of the AUD/USD, we can see that the price remains well above the major up trendline, as well as the newer, steeper trendline, which is drawn through the low from June.

In response to the Bank of Japan intervention in the Yen last week, all of the JPY pairs moved up sharply.

The GBP/AUD is still dominated by a downtrend. On the intermediate term chart, the most visible feature is the sharp selloff in August and September, which pushed this pair from 1.7560 down to 1.6440. However, this may be ending soon.

The New Zealand Dollar has been in an uptrend for the last few months in relation to the US Dollar. Since May, it has appreciated from 0.6560 to 0.7390. It had reached this level twice, most recently earlier this week and is now pulling back.

EUR/CAD pair started to build a trading channel that by now is very well defined. This channel is drifting down, and about to meet the main up trendline, with a starting point at the 1.2450 low.

Much to a surprise of many traders, the Euro has been very strong recently. It rallied against many other currencies, in many cases reaching important resistance levels, where next price swings will be decided. The EUR/GBP pair is at just such juncture.

Financial markets, including the currencies are having hard time finding direction.

Recently, the Swiss Franc has benefited greatly from its perceived status of a “safe haven”. This currency has been very strong, reaching an all time high against the Euro and marking major gains in relation to other currencies.

The major down trend in USD/JPY continues. Earlier in the week, this pair made another 15 year low at 83.34 and large-scale charts show no signs of a trend reversal yet. However, on smaller time frames the Dollar appears to be regaining some strength. Is it for real?

Although cable seems to want to push back up again and continue the uptrend of July, having a look at the markets there seems to be not enough steam to move the pair forward. Positive news is helping some weak rebound but to soon again find resistance and fall back off, sometimes even at a lower low.

On Wednesday, the Bank of Canada boosted its interest rates to 1 percent from 0.75 percent, making it a third increase in a span of four month. In response, the Canadian Dollar rallied strongly against other currencies, including the Swiss Franc.

The most liquid currency pair, the EUR-USD, has been sending many mixed signals lately. After reaching a high of 1.3330, this pair pulled back to 1.2600.

Just like the other currencies, the Canadian Dollar has sold off considerably against the Japanese Yen lately

Recently, currencies have been subjected to a series of wild swings in public sentiment. Seemingly, every few days the perception switches from a “flight to safety” to a “pursuit of risk”. One of the best examples of this wavering opinion is the AUD-JPY.