Forex Daily Forecast, Analysis and Prediction

The Pound had seen the greatest amount of volatility coming behind the BOE minutes. Despite the fact that the BOE minutes came nothing short of predictable, with merely Andrew Sentence dissenting, the Pound gained strength.

With a lot of attention on USD/JPY, the other crosses of the Japanese Yen are quietly building chart patterns, which will likely lead to directional price movements. One example is the NZD/JPY.

Looking at the technical analysis spectrum, we find that Euro remains in relatively stable intermediate uptrend. However, the tides might be changing if the EUR/USD pair can fall below pivotal technical levels.

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.