Forex Daily Forecast, Analysis and Prediction

Bitcoin faced a sharp pullback on Thursday, testing key support at $120,000 as US dollar strength pressured risk sentiment across crypto markets.

Monero (XMR) is holding steady near $336.36 after another failed attempt to clear resistance around $342. The privacy coin remains trapped in a narrow range as buyers defend short-term support near $323, and sellers consistently fade rallies into the mid-$340s.

The US dollar initially did rally a bit during the early hours here on Wednesday but gave back those gains to show signs of life again. Ultimately, this is a market that I think is going to continue to be very noisy in general. But I also recognize that we have a situation where we are basically hanging around between the 1.39 level on the bottom and the 1.40 level on the top. I do think that eventually the US dollar ends up outperforming the Canadian dollar and we do break above the 1.40 level. If and when we do that, I think we've got a situation where traders will really start to look towards the 1.4250 level.

The US dollar initially did rally a bit during the early hours here on Wednesday but gave back those gains to show signs of life again. Ultimately, this is a market that I think is going to continue to be very noisy in general. But I also recognize that we have a situation where we are basically hanging around between the 1.39 level on the bottom and the 1.40 level on the top. I do think that eventually the US dollar ends up outperforming the Canadian dollar and we do break above the 1.40 level. If and when we do that, I think we've got a situation where traders will really start to look towards the 1.4250 level. This would take some momentum, but I think it could come into play.

Tesla looks like it is going to open higher in reaction to the pre-market trading, which is a good sign that we will be able to hang on to the overall uptrend. After all, the market has seen a rough couple of sessions, but the fact that it is showing so much in the way of resiliency is a good sign.

It looks like we are going to see yet another situation like we have seen over the last several days where the Euro gets sold off pretty early. But when the Americans show up, the United States dollar starts to shrink. And I think that is part of what's going on here. American traders are just simply selling the US dollar. That being said, the 1.16 level continues to offer support. And if we were to break down below that level, I think you've got a situation where we could really start to break down at that point, the market could drop to the 1.14 level, which of course is right about where the 200 day EMA is currently hanging around.

Daily Forex, this is Chris taking a look at Bitcoin. Bitcoin has rallied a bit during the early hours here on Wednesday as we continue to see a lot of volatility in this market. Ultimately, this is a market that I think continues to see a lot of buy on the dip behavior. And I will be the first to admit that the market is likely to continue to see plenty of people willing to get involved.

The Australian dollar fell initially during the trading session on Wednesday again, testing the crucial 0.6550 level. The 0.6550 level is an area that a lot of people will be paying attention to as it has been a magnet for price. Furthermore, we also have the 50 Day EMA hanging around in this area, and I think what we are looking at is a market that is trying to sort out where to go next. After all, the Australian dollar has been somewhat sideways for a while, and at this point in time it’s worth noting that the US dollar is strengthening against multiple currencies around the world.

The US dollar has rallied against the Swiss franc during the trading session on Wednesday, as we are now above the 0.80 level. This is a victory for the US dollar, and it’s likely that we will continue to see this market try to build upon this momentum. If we do, then the 0.81 level above ends up being a major target, and if we can break above there, then it’s likely that the market could go much higher. Ultimately, this is a market that has been negative for quite some time, but now we have broken above a significant uptrend line, and it’s possible that we could see this market try to reverse the overall trend.

The British pound initially tried to rally against the US dollar during the trading session on Wednesday, but it looks as if we are starting to fall a bit, perhaps trying to break down below the crucial 1.34 level. If we break down below here, then the 1.33 level is an area that I think will be very important. This is especially true considering that we have seen some action in the past, and of course we have seen the 200 Day EMA aiming for that level as well.

The British pound had rallied early during the trading session on Wednesday, but it looks like it is starting to discover the concept of gravity, after what has been in an explosive 5 days against the Japanese yen. The ¥205 level is a large, round, psychologically significant figure that will attract a lot of attention, and it’s probably worth noting that the candlestick for the session looks to be a bit of a shooting star.

The German DAX rally during the trading session on Wednesday, breaking above the €24,500 level. By doing so, the market is likely to continue to see a lot of momentum in this market, and the fact that the candlestick is bigger than the previous ones, and the fact that we had a gap previously, it suggests that we are in fact starting to see some momentum enter this market. With this being the case, any short-term pullback probably attract a certain amount of attention as the uptrend is starting to continue, and it looks like we are trying to break out of a bigger consolidation area.

Amid moves that have amazed investors, gold futures are already heading towards a new milestone in the middle of the trading week. Just one day after surpassing $4000 per ounce for the first time, the gold price index is looking to reach $4100 per ounce. According to gold trading platforms, the yellow metal's index has risen to the resistance level of $4060 per ounce, the highest in the history of the gold trading market. Overall, the price of gold has risen by more than 4% this week, bringing its year-to-date increase to about 54%.

French political uncertainty has dominated sentiment, alongside a renewed recovery of the US dollar amid demand for it as a safe haven. Consequently, according to currency market trading, the EUR/USD pair tumbled to the 1.1598 support level, the currency pair's lowest in over a month. However, a temporary respite in Paris later provided short-term support, but bond market risks still loom over the Euro. According to reliable trading platforms, the EUR/USD price is stabilizing around the 1.1630 level at the beginning of today's session, Thursday.

While Gold and Silver are within the highest elements of apex values, Palladium has seen a speculative buying storm also take hold the past month, but it remains far below record price levels.