Forex Daily Forecast, Analysis and Prediction

The downtrend will continue, with more good news forecast for the Dollar, the EUR/USD will likely continue down on the daily chart today.

Lifted to their centerlines or beyond, Bollinger Bands, Full Stochastics and StochRSI are now satiated and ready for the greater downtrend to continue or let the RSI and the hard hitting news that favors the EUR side of the EUR/USD have it's way with this pair and start a bit of a rise on the daily chart.

USD/JPY traded down near 3rd channel extension support (purple) at 89.66, but has rebounded.

The market appears to be calling for more sideways price action before resuming the LT down-cycle.

All of the major stock markets closed at least marginally higher at the end of last week’s trading session. In Europe over the course of last week, the FTSE put on 1.6%, closing at 5142.5; the CAC managed to rise by almost 1% closing at 3599.1; the Dax made 1.2%, ending the week at 5500.4.

Taking each indicator's vote, with Bollinger Bands, Full Stochastics and RSI below their centerlines and only the StochRSI wrapped around it's center area, the EUR/USD should be headed for the clouds on the daily chart.

The EUR/USD completed the ST down-cycle yesterday at 1.3595, and is now being pulled down by the longer-term cycles. The LT black cycle has a 3rd channel target at 1.3484, and the LT angled purple cycle has a 4th channel target at 1.3404.

EURGBP bears are getting more confidence between support at 0.8699 and resistance at 0.8723. It looks like below support level bears can initiate negative trend

Bulls couldn't manage to break current trend line, a rebound was initiated back to support level, look for selling options below support barrier while trend line remains active. Bears are controlling situation for now.

The pair with the most volume on the foreign exchange market shows that it does not want to stray from that 1.3700 region. For the eighth day it wanders around that price area.

Negative trend line still holds, however bulls are heading towards to reach new highs. Above trend line, bears are in danger.

The trend, in recent weeks, has been unwilling to bend. With the only hard hitting news today having a forecast favoring the Dollar, it is unlikely to bend today.

Price action has allowed the unceasing domination in recent weeks of the USD. The Dollar's strength will continue for at least one more day due to the strong news release below.

AUDUSD currency pair did manage to break resistancel evel at 0.8715, however trend line stays valid and not broken. At the moment buying options should be done with a care.

Narrow trading range is formed for now, however bulls are looking forward to test resistance barrier. Above resistance, look for short term upswings.