Forex Daily Forecast, Analysis and Prediction

Earlier this week, the US Dollar mounted a broad rally against all other currencies. It lasted coupled of days and gained few hundred pips in most cases

In recent days, the GBP-AUD slowed its decent to some degree. This pair has made an all time low at 1.5960, fueled by the seemingly unstoppable strength in the Australian dollar and lack of good news for the Pound. However, that trend could be changing.

Is EUR-USD forming a top? It has been a very nice rally for the EUR-USD. Since August, this pair has progressed from 1.2670 to just under 1.4100 last week or over 1400 pips in less than two months.

CAD-JPY could re-test 78.40. A lot has been made recently about the Canadian Dollar reaching parity with the US Dollar. Upon closer inspection, however, that has more a result of a weakness in the USD than a genuine strength in the CAD.

While everybody is focused on new all time lows made by the US Dollar against other currencies, the GBP-CHF has also reached a new price extreme. It has been slipping in a steady, not very dramatic, downtrend all the way to 1.5090.

Currencies are in very strong trends, with the US Dollar falling sharply. It has broken through the parity level with the Swiss Franc and now seems destined to repeat it against “the other dollars”.

The Euro has been one of the best performing currencies recently. While the EUR-USD pair gets most attention, the common currency has appreciated substantially on broad bases.

Start of the week turned out to be rather directionless for most currencies. If anything, the moves went in opposite direction to the main trends, but nothing big, something that can be qualified as a “noise”.

During the last few weeks, the EUR-GBP pair made substantial gains, appreciating from 0.8067 to 0.8804. It is a big move and it seems that a bull market is in force.

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Possible reversal for USD-CAD. The Canadian Dollar had another big day on Wednesday, especially in relation to the US Dollar.

On Tuesday, the NZD-USD came within few pips to 0.7500, which is a very important psychological level here. Not only because of a round number, but it also happens to be the highest level in 2010, a new yearly high.

The EUR-CHF pair spent most of September pulling away from the all time low 1.2765 established earlier that month. This move turned out to be a good size rally, reaching 1.3465, forming a clear uptrend on the intermediate term time frame.

The US Dollar has been under pressure against most other currencies. It lost a lot of ground to the Euro and the Australian Dollar. By comparison, the British Pound has been less robust recently, which is clearly reflected on the daily chart of the USD-GBP.

The EUR-USD has surprised many with its strong uptrend. After reaching a low of 1.1875, in early June, it advanced to 1.3680 recently and the trend looks intact. Now the question is – how much higher can it get?