Forex Daily Forecast, Analysis and Prediction

The tower formed late last week, was followed by the movers of the market opening this week, by putting the EUR/USD into a downward direction.

Intensely awful news for the side of the EUR/USD the United States has, rocketed this pair up. Bollinger Bands, Full Stochastics, StochRSI and RSI were each above their centerlines, this shows the importance of taking into account news when trading technicals

Two of the three heaviest hitting news releases that will send the EUR/USD in a direction today that does not favor the Dollar.The other item is strong enough to ensure this day will likely end only slightly up.

The EUR-AUD pair has been in a prolonged down trend since the original financial meltdown of 2008. This could be changing.

Technicals have been pushed down due to the intentions of market movers. The Non-Farm Employment Change is forecast to empower the USD to help the EUR/USD dive further down.

Over the last month or so, the USD-JPY pair sold off from 93.00 to 88.25. A significant fall in relation to the most recent history. However, this move may be ending.

“The world is flat” as some would say- This year was nothing less than a proof of that statement.

The strength and determination of those that had the money to create yesterday's move will cause the EUR/USD pair to end lower.

Despite the negative economic announcements, the Japanese Yen continues to outperform other counterparts.

No notable news is available to direct the EUR/USD pair today, so it will likely continue on it's way up.

Recently the Japanese Yen has had few days of gains. Likewise, the British Pound had a decent rally. Combination of these two currencies getting stronger created very erratic moves in their cross, the GBP/JPY.

During the last few days, the Japanese Yen made strong gains against most other currencies, including the high flying “commodity dollars”.

The question is: How Low Can We Go? Well, the Japanese Yen is gaining strength amid weaker US Dollar and comments by Japanese officials.

On the daily EUR/CHF chart we see the price formed a possible reversal candlestick formation – the hammer. It is important after a prolonged down trend and it carries bullish implications.

Through out the New York Session, we expect the Pound to continue to head lower as long as New Home Sales and Federal Reserve do not ruin the parade.