Forex Daily Forecast, Analysis and Prediction

That is the uncomfortable reality for this market right now. It is not simply a question of charts or interest rates. The EUR/USD currency pair is caught between an energy story that could become much more serious for Europe and a U.S. dollar.

Major markets are showing mixed price action as interest rates, industrial demand, risk appetite and technical levels shape the current market landscape.

The important point is that gold has been able to rally despite elevated interest rates in the United States. Normally, that environment can work against gold, as higher yields raise the opportunity cost of holding an asset that does not offer income.

This currency pair continued its recent side in early trade on Friday, pressured by dollar strength driven by soaring Treasury yields and increasing bets of further interest rate hikes.

CAD/CHF remains bullish above key 0.58 support, with 0.59 the next major target. The Canada-Swiss rate differential continues to favor the longer-term upside.

AUD/CHF remains supported near 0.58 after the SNB held rates at 0%. A break above 0.5850 could target 0.5900, while 0.58 remains the key support level.

EUR/JPY remains bullish after reclaiming 180. The current buy setup targets 183 with a stop at 179.40, while a break above 182 would strengthen the bullish outlook.

USD/CHF remains bullish while holding above 0.82 support. The wide US-Swiss rate differential favors further upside, while 0.81 is the next key support area.

Copper remains bullish while holding below key $6.90 resistance. A confirmed breakout could target $7, while $6.50 remains an important pullback support area.

AUD/JPY remains supported above 110 after rebounding from recent lows. Improving risk appetite and the Australia-Japan rate gap continue to favor buying on dips.

A rejection at a round number is common, but a rejection followed by a quick drop is more than hesitation. It shows sellers were waiting at the level and had enough force to push price well below it once the buying stalled.

This currency pair has experienced a rather tame trading range regarding price levels, but Tuesday’s close and yesterday’s gap upwards presents dynamics for speculators they might find appealing.

The euro is finding the current environment increasingly uncomfortable against the US dollar. The issue is not simply that the dollar has been strong, but that the factors supporting it have shown little sign of fading.

Global markets early this morning have turned cautious, the broad Forex market is showing USD centric strength. The USD/INR is within sight of it highest realms but has not found enough buying action to take it beyond its current threshold within a five day technical sense.