Forex Daily Forecast, Analysis and Prediction

The EUR/USD pair sold off sharply last week, closing at the low for the period. This often indicates a continuation of the trend later on. On Monday, however, that has not happened. Why?

The growth in Japan has put a pressure on the risk appetite in London Session. The Yen climbed to 85.20 following a much lower than expected reading.

The Japanese Yen pairs have been in a strong down trend recently. For right now, the longer-term charts still show a bearish bias, but some of the shorter-term graphs indicate possible reversals. One of them is the GBP/JPY.

After testing the 84.80 low from last year, the USD-JPY rebounded on Thursday, closing the day at 85.89. Shortly after that, the exchange rate moved above 86.00, prompting talks about the trend reversal.

Since making the new low of 2.0330 in May, the GBP/NZD has been making new highs. Every upswing took this pair above its previous resistance, and every successive low was above the prior low. This is a definition of an uptrend.

With the policy meetings by the FED and the Bank of Japan, most of the attention among Forex traders have been directed to the US Dollar and the Japanese Yen. Meanwhile, some of the other currency pairs are developing chart patterns, which could result in promising trading opportunities.

So far this year, the GBP/CHF has been very quiet, when compared to previous years. Conditions like these do not last forever and are often followed by an explosive move out of trading range.

The longer-term chart of the AUD/NZD in a process of forming a bottom chart pattern.

The Japanese Yen- US Dollar pair is steadily approaching the low from last year- 84.80.

The NZD/CAD has been appreciating in a steady fashion for last two months. This pair advanced from a low of 0.6940 to 0.7600. From there the price started to drift lower. Which brings forward the following question – is this a pullback within the major uptrend, or a reversal?

During the last few weeks, the EUR/CHF has been slowly, but steadily moving up.

The CAD/JPY pair has been in a sideways mode for the last few weeks, creating a symmetrical triangle.

The Pound-Swiss Franc pair has been flying under the radar screen of media, with most attention given to the EUR-CHF and the repetitive SNB interventions that targeted that cross.

Unbending in the past with this recent rise power, the Euro's will, will be tested again. There is a forecast to aid it's climb into territory it has not tread upon for a long time.

The most recent week has been very slow for the EUR/CAD. For the better part of July, this pair posted strong moves, but right now, it is consolidating.