Forex Daily Forecast, Analysis and Prediction

This Forex technical analysis explains that the latest bad data coming out of the US will give Forex traders the opportunity to enjoy an uptrend in the Forex market.

The EUR/USD's range bound daily chart is in a upswing, this upswing is likely to continue with help from two bad forecasts outnumbering the one good forecast for the Dollar today.

USD/JPY fell slightly short of our 90.91 4th channel target, topping at 90.81. This may be enough to complete the MT up-cycle (blue), followed by more sideways consolidation.

Both hard news releases counteract each other. So the Bollinger Bands, Full Stochastics and StochRSI being above their centerlines will have to direct our trades downward. The RSI does not object just being a hair below it's centerline.

After retracing 61.8% of the previous down-cycle, USD/JPY has retreated a bit, indicating the MT up-cycle may have completed with three channels-plus-extension at 90.67 (blue).

The daily chart of the EUR/USD is on a down swing of a range bound past few weeks.

With no heavy news releases for the EUR/USD pair today we are turning to the Bollinger Bands, Full Stochastics, StochRSI and RSI that are there every day for us.

The unemployment rate in the U.S held at 9.7% and payrolls fell less than forecasted in February, indicating that the U.S labor market is stabilizing. Payrolls were expected to drop by 68,000 and the jobless rate was projected to increase to 9.8% according to Bloomberg estimates.

The daily chart for the EUR/USD has seen it climb enough in the past week, to bring each of the four technical indicators this chart enjoys to or beyond their centerlines.

At the conclusion of its March 2nd meeting, Bank of Canada’s policy makers left its key interest rate unchanged at 0.25 percent and pledged to hold its current policy rate constant until the end of the second quarter.

No clear technical direction is on the table. Fortunately both of the heaviest news items for this pair are not favoring the Dollar and except for the StochRSI all of the indicators are at or below their centerlines. This combined with yesterday's sharp decline in this pair, will allow for a easy rise today.

Resistance in the EUR/USD at 1.3673 was broken and a rally up to 1.3735 followed.

Breakout at resistance level of 1.3646 occurred. While candles remain above resistance, possible bulls recovery can be initiated.

If the Euro's Minimum Bid Rate stay's the same, the other two powerful news items should bring the EUR/USD easily down

Range bound in recent weeks, the EUR/USD's daily chart will stay that way with the two heavy news items released today. These items will weight the USD side of the pair and bring it closer to 1.3500 once again. The StochRSI has been flying high and is ready to put the RSI it foretells the direction of, down. The Bollinger Bands have the price above their centerline and the Full Stochastics are at their centerline. The technicals are comfortable with today's news releases taking this pair down.