Forex Daily Forecast, Analysis and Prediction

EUR/GBP continues to look very bullish to me. Price continues to make higher highs and higher lows, shorter term ema's are crossing through

Taking a look at EUR/JPY pair we are obviously in a period of consolidation and we continue to be range bound.

The Aussie has been very bullish but it looks to me like this uptrend is beginning to stall out a bit.

Today's daily candle chart for the Aussie formed a strong bullish engulfing candle closing above the former resistance zone at 1.569.

The kiwi is trading higher today after bouncing off its 100-day MA yesterday around 0.8230. Looking closer at a 1H chart, we are waiting for an inverted head and shoulders pattern to complete around 0.8260.

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Looking at the weekly it appears that price is setting up for continuation to the upside. The weekly Stochastic is in the trade zone crossing up.

I am seeing some evidence that the USD/JPY may become a bit bullish since the USD/JPY recently double bottomed just above the weekly M3, a bullish sign to me which points to JPY weakness with this pair, and of course in my EUR/GBP review I did point out EUR weakness and I have recommended EUR/USD shorts.

Looking at the 4 Hour chart we are at the 38.2 Fib zone of the recent fall for this pair, overlapped with the 55 and 144 ema's just above price. Also note that the upper Bollinger band is pointing downward.

On the daily chart the Stochastic is inside the oversold zone and outside of the lower Bollinger Band and quite a distance from all its emas. Get the full analysis here.

Due to yesterdays negative CHF CPI report the USD received a lot of strength so today we see a rather strong USD. If you take a look at my review of the EUR/GBP you will read that I am bearish on that pair which translates into EUR weakness.

While the Swiss Bank was intervening in the swissy today, the EUR/GBP pair was finding support at the daily zone of 0.8750 give or take a few pips. The daily candle was 'only' 88 pips in comparison to the USD/CHF which was about 1000 pips, but it is relevant all the same due to the fact that it completely engulfed the prior 2 daily candles, retraced about 50% and still closed up by about 35 pips.

The eurjpy continues to look perfectly bearish. There is absolutely no reason to considering anything but short positions with this pair. This pair is gracefully riding the ema's on all time frames from the weekly all the way down to the 1 minute.

The eurgbp continues to look bearish. Price is below the ema's with ema crossovers on the daily with the exception of a small 233 ema bounce, the daily stochastics is within the trade zone heading downward.

This currency pair continues to look extremely bearish. On the daily we have open bollinger bands and are still within the bands and we have broken the 233 ema.