Forex Daily Forecast, Analysis and Prediction

More than half a billion in long positions were liquidated across the crypto market on Monday as the price of Bitcoin dropped to $112,000 amid a broader market tumble.

A superb return on assets, equity, and invested capital, plus excellent profit margins, should provide a floor under the current selloff. Is it a buying opportunity?

An excellent return on equity and outstanding profit margins, combined with a decent valuation, make for an appealing investment case. Should you buy the correction?

The Euro has fallen a bit during the early hours on Friday, but we are starting to see a little bit of buying as the Americans come on board. After all, nobody likes selling the US dollar more than Wall Street, so that's not a huge surprise. At this point, we are below the 1.18 level, which is a major area of previous resistance that did not hold its support so far.

The USD/BRL went into the weekend near the 5.3280 ratio, this after spiking to a low of nearly 5.2700 on early Thursday, this as large traders continued to react fast to their perceptions regarding the U.S Federal Reserve.

Gold is slightly positive during the trading session here on Friday as we are trying to stabilize a bit and perhaps work off some of that excess froth from the shot higher. The market on the weekly candlestick at least is trying to find a shooting star to print. If the market were to break down from here, then we might get a little bit of a pullback. The alternative is to simply go sideways for a while at this

The natural gas market has dropped a bit in the early hours here on Friday as we are hanging around in a range and waiting to see if we break down to a larger gap. That is very possible, but I also recognize that at this point in time, we are getting fairly late in the season, and we are getting close to a major trend line. So, if we do break down from here, there is a gap that is right around the $2.73 level or so.

Silver has rallied a bit during the early hours here on Friday as we continue to see a lot of support at the top of the previous bullish flag that we broke out of. So, it looks like we see a lot of market memory coming into the picture that was previous resistance and now in support. If we are rallying at this point in time, and it looks like we will try to the $43.35 level could be targeted in the short term with the flag here, offering quite a bit of support all the way down to about $41. Even if we break down below there, if we were to show selling pressure, we might test the $40 level, which was a previous swing high with the 50 day EMA coming into the picture offering support as well. Ultimately, if we break out to the upside, then we might fulfill the flagpole here right around $46.

The USD/ZAR is near the 17.35500 realm as of this early morning with a wide spread being seen as financial institutions start their new week in the aftermath of the U.S Fed decision last Wednesday.

The US dollar initially fell against the Japanese yen during the trading session on Friday, reaching to the 50-day EMA before turning back around. It's worth noting that the Bank of Japan had an interest rate decision, and it, of course, didn't really do anything. But at this point in time, there are questions asked whether or not they will have to cut, despite the fact that the Federal Reserve cut on Wednesday.

The US dollar rallied against the Mexican peso a bit during the trading session here on Friday, testing the 18.50 MXN level before selling off. All things being equal, it’s also worth noting that we had formed a couple of hammers during the previous session, bouncing from the 18.20 MXN level. All things being equal, this is a pair that is going to continue to be noisy mainly due to the interest rate decision coming out of the Federal Reserve, and of course questions about the US economy overall.

The euro dropped a bit against the Japanese yen during the day on Friday, breaking below the ¥174 level. The ¥174 level is an area that previously has been resistant, as it was the top of the ascending triangle that I have been watching so closely. All things being equal, the market is likely to continue to see this area as important, but the short-term pullback I think offers a bit of value that people might be willing to take advantage of.

The Australian dollar is gone back and forth against the Swiss franc during the trading session on Friday, right in the middle of the larger trading range that we have been in for what seemed like a lifetime. In other words, this market is very “neutral”, but what makes it so interesting to me is that it’s a major barometer for risk appetite, as the Australian dollar is based on commodities, and of course the Swiss franc is considered to be a “safety currency.”

The New Zealand dollar has fallen a bit during the trading session on Friday as we are looking to the 0.5850 level, an area that has offered support a couple of times recently. Ultimately, if we can break down below there, we could see a test of the 0.58 level, and I think it’s possible that we have a “zone of support” in this region. Breaking down below that would be a very ugly turn of events, and it is worth noting that the New Zealand dollar has completely fallen apart over the last couple of days, and things are getting a little overdone.

The German index rally initially during the trading session on Friday, reaching toward the 50 Day EMA, before pulling back a bit. All things being equal, this is a market that is still in the midst of some type of consolidative action, and we are trying to figure out where to go next. Ultimately, if we can break above the 50 Day EMA, that would be a very bullish turn of events, and it could open up a move toward the €24,500 level