Forex Daily Forecast, Analysis and Prediction

The pair fell during the week, but remains choppy to say the least. Although we broke below the 1.30 level, we didn’t do so significantly, and as a result it looks as if the market wants to chop around more.

The XAU/USD pair tried to reach the 1486 resistance but failed as the USD bulls gained some strength after the report released by the U.S. Labor Department revealed initial jobless claims dropped by 4K to 323K, the lowest level since 2008.

The EUR/USD pair fell during the session on Thursday, bouncing around in the consolidation box of the market been trapped in for the last month or so. This area is fairly well defined, as the 1.32 area seems to be the top, while the 1.30 level seems to be the bottom.

The USD/JPY pair finally did would everybody was hoping for on Thursday, it finally broke above the 100 level. Because of this, it appears that this market is ready to continue much higher, and it must be said that the Bank of Japan must be very happy with what's going on so far. After all, it really hasn't had to do too much at this point time I'm in order to get the value of the Begin to sink. It appears during the Thursday session, many of the previous option barrier that the 100 handle have been overcome, and as a result this market looks like it's ready to go much higher.

The WTI Crude markets fell during the session on Thursday, but did bounce significantly in order to form something along the lines of a hammer. This of course is a bullish sign, but I see the $97.00 level just above as offering resistance.

I believe that this particular market will do quite well, especially considering that the British pound have seen a bit of a resurgence lately. On top of that, this pair is and as liquid as some of the other ones, so therefore the move could be relatively strong. I also like a couple of other Yen related pairs, namely the Aussie and the Kiwi

Gold prices (XAU/USD) settled higher yesterday, as weakness in the U.S. dollar helped buyers. The XAU/USD pair traded as high as 1476.73 after prices changed direction at the 1442 support level

The WTI Crude market had a positive session on Wednesday again, as we continue to bounce around in a consolidation area. Looking at this chart, I can see that the $97.00 level begins a significant amount of resistance. I believe that this resistance area runs all the way up to the $98.00 level, and possibly even higher. There is a significant amount of noise from back in January in this general vicinity, so this isn't exactly unprecedented.

The EUR/USD pair rose during the session on Wednesday, and gained significantly. However, as you can see the 1.32 level has offered enough resistance to repel price. The candle itself does look supportive though, so I have to suggest that perhaps this market may have a bit of a bid in a going forward, and that is significant attempt to take out resistance may have been.

The AUD/USD pair initially rallied during the Wednesday session, but as you can see the 1.02 level acted as enough resistance to push price back down. The resulting candle for the Wednesday session was a shooting star, and the fact that it is at the bottom of a significant selloff is of course a very bearish sign as well. The 1.02 level acting as resistance doesn't help the case for the buyers either, as it was one support, and this of course could show a significant push lower.

The USD/NOK pair isn’t necessarily one that many of you will trade on a regular basis. However, the Norwegian krone is a liquid enough currency that successful trades can be placed using it. The first thing to understand about Norway's economy is that it is highly influenced by the price of crude oil. This is because many of those drilling rigs in the North Sea are actually Norwegian owned, and therefore the Norwegian krone is somewhat of a petro currency.

According to Christopher Lewis analysis of the EUR/JPY, “Going forward, I think that eventually the 131 level will get broken above, and the fact that the market is so strong going forward, I think that we will see a move towards the 135 handle at first, and perhaps even much higher levels”.

Gold prices continued to fall yesterday as the bulls failed to overcome the resistance level at 1486 to gain more momentum. It seems that major investment companies and funds are reluctant to buy gold after last month's sharp drop, which caused prices to break out of a massive consolidation area.

The British Pound is showing signs of weekness across most of the key currencies, but none are showing so clearly as the GBP/CHF. THis pair has now made a double top on the daily chart and printed a Pin Bar Reversal candle this time around, AND the double top is the right arm of a large daily 'W' formation, a reversal pattern in itself.

The WTI Crude market had a slightly negative session on Tuesday, continuing the lack of bullishness that we've seen over the last three days. The candlesticks for Friday and Monday both look very shaky at best, but I do see significant support at the $95.00 level. Going forward, I believe that this market is trying to run out of steam and start falling again, but until we get a close below the $95.00 level, I would be a bit hesitant to short this market.