Forex Daily Forecast, Analysis and Prediction

Geopolitical tensions are on the verge of escalating in the Middle East after the US killed a top Iranian general in Iraq.

After entering a sideways trend inside its support zone, the EUR/AUD managed a breakout.

It has been less than 72 hours into the new year, and geopolitical tensions have already spiked.

Economic reports out of the US have been disappointing, and the US Dollar is under growing selling pressure across the board.

While the long-term outlook for the EUR/CHF remains bearish, a short-term recovery is favored to take this currency pair out of extreme oversold conditions.

While Japanese economic data has been soft, aiding the rally in the CAD/JPY, the Japanese Yen is anticipated to benefit from the return of a risk-off period

Bullish momentum is on the rise after price action in the AUD/NZD was able to ascend above its support zone.

The West Texas Intermediate Crude Oil market initially pulled back during the trading session but did bounce a bit on Tuesday.

Natural gas markets have initially pulled back during the trading session on Tuesday but have shown quite a bit of resiliency by bouncing and forming a bit of a hammer.

The NASDAQ 100 initially pulled back during the trading session on Tuesday but turned around to show signs of support yet again as we have so much in the way of bullish pressure longer term

The S&P 500 has initially pulled back during the trading session on Tuesday only to turn around and show signs of life again.

Gold markets continue to look bullish overall, but the trading session on New Year’s Eve ended up forming a shooting star.

The Euro has broken higher during the trading session again on New Year’s Eve, as we are above the 1.12 handle.

The Australian dollar has rallied a bit during the trading session on New Year’s Eve, but this is a market that is starting to get a little bit overextended.

The US dollar fell again during trading on Tuesday, as we reached towards the 200 day EMA.