Forex Daily Forecast, Analysis and Prediction

Last week saw the US Dollar sell off again, but markets are now consolidating on a typically quiet Monday. Price action still threatens a bullish breakout beyond the resistance level at $1.1187.

The US dollar looks like it is on its back foot, which makes a certain amount of sense considering that the Federal Reserve has cut interest rates.

The first thing I see is that we broke well above the 1.33 level during the trading session, and therefore I think it’s only a matter of time before we go much higher.

The first thing I see is that we continue to see a lot of resistance just above, especially near the 0.6850 level, an area that has been a major barrier for quite some time.

The GBP/USD exchange rate rose sharply, reaching its highest level since February 2022 after the Federal Reserve and the Bank of England (BoE) interest rate decisions.

Bitcoin held steady on Monday morning as last week’s momentum faded.

It’s obvious to me that the market is going to continue to be very weak, and although we have ended up forming a bit of a hammer, the reality is that this is a pair that is seen massive selling pressure.

The AUD/USD exchange rate wavered near its highest point this year after the relatively dovish Federal Reserve interest rate decision.

The first thing I see is that we have in fact challenged the ¥144 level, an area that has been important a couple of times in the past as it was support on the way down.

There will be a human tendency to look at the WTI Crude Oil price upon its opening on early Monday and believe the value of the commodity should jump because of the heightened tensions being seen between Israel and Hezbollah.

Last week, risk-on sentiment improved strongly as the US Federal Reserve delivered a half-point rate cut while promising a further 50 basis points of cuts by 2025. Gold and the S&P 500 Index ended the week at new record highs.

The ability of the EUR/USD to sustain its higher realms late this week and not suffer any major reversals lower after Wednesday’s volatility is a solid signal.

Get the weekly Forex forecast for major currency pairs for the week of September 23-28, 2024 here.

In my daily analysis of minor currency pairs, I have been paying attention to the GBP/AUD pair, as well as other British pound related currency pairs, as the Bank of England chose to keep interest rates steady during the early hours, and therefore it does suggest that perhaps there might be a bit of support for the British pound going forward.

During my analysis of major currency pairs during the trading session on Thursday, the US dollar looks very weak as traders are starting to punish the greenback due to the fact that the Federal Reserve cut interest rates by 50 basis points during the session on Wednesday.