Forex Daily Forecast, Analysis and Prediction

Looking at the GBP/USD pair- it looks like it's not going to stop so easy. It is looking to me like it wants to break 1.5750 and if it breaks I think we are falling all the way to 1.5350.

The Sterling found some support at 1.5775 during the Asian session but will it hold? Investors appear to be returning to the North American markets while they wait for the EU to come to the rescue of Greece.

For the last couple weeks the EUR/USD has been in a very steep downtrend. It has broken a price trap I had it in, it has broken trend line. A break out such as this usually follows up with a retracement to or near the break area.

The weekly ema's and price seem to have met up with each other, the 5 has crossed the 21 ema and is pointing downward. The Daily candles have broken and retested the 233 ema and the lower Bollinger band is open to the downside.

This pair continues to look bearish. I really do not see too much in the way before 104.60 witht the exception of the Daily Central Pivot Point at 105.07 which if broken and revisited, will give you a very comfortable short trade with a stop loss just a few pips above the Central Pivot Point.

Today's view of the EUR/GBP we appear to be in a period of consolidation. Yesterday, as I specified we were in a period of retracement. I think this retracement can continue all the way until 0.8690 area.

Looking at this pair I see what could be a Weekly Double Bottom at 1.5785 and price is still far enough from the Weekly and Daily ema's I think price needs to continue upward a bit.

We are approaching a 38.2 Fib Retracement of the previous swing down with a 4 Hour 21 ema just above that fib level. Price is also just below the Hourly 55 ema and we are just below yesterday's high and it kind of looks double toppish.

If price breaks to the upside we will see some resistance at 0.8250, 0.8320 & 0.8380 as I mentioned in yesterday's post. If however, price falls below 0.8200 again, it must break below another key support level at 0.8097.

Price is way outside the lower Bollinger Bands on both the weekly and daily charts, has traveled a distance from the 5 ema on both charts and in the oversold zone of the Stochastics on practically all time frames.

This pair continues bearish however, it is at a daily 50.0 Fib to the upside overlapped with a daily 233 ema and lower Bollinger Band, approaching the Stochastic oversold zone.

Looking at this pair I see it is approaching the Weekly 144 ema and at the edge of the Lower Bollinger Band.

As I observe this pair there is absolutely no doubt it has been in a downtrend for the past couple weeks and there is really no reason for this down trend to end, however, I believe a slight retracement is due before price continues downward.

The GBP/USD is quite a distance from its 5 ema and up against the lower Bollinger Band on the Weekly chart, as well as about 40 pips away from the Daily 5 ema, with Stochastics in the over sold zone.

The Euro fell close to 500 pips against the U.S. Dollar late last week, extending a sell-off that has taken the currency pair from 1.4500 at the end of August down to an intraday low at Friday’s close by 1.3653. European sovereign debt troubles have long plagued the currency but investors have turned a blind eye to the fiscal troubles purely due to the hawkishness of the European Central Bank.