Forex Daily Forecast, Analysis and Prediction

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The Kiwi dollar had a grand day on Tuesday as the “risk on” trade appeared globally. The first real trading day of the year often will bring a lot of money into the markets as money managers are looking to put money to work, and they are overwhelmingly “long only” funds, which mean that they can only buy stocks, commodities, or other financial instruments. In other words, they are positively biased.

EUR/USD rose during the Tuesday session as traders returned from the holidays for the first “real” day or trading. The volumes are probably still a bit on the light side, as the Non-Farm Payroll numbers will be coming out on Friday.

USD/CAD had a bearish day on Tuesday as the oil markets got a bit of a bump in lighter volume trading. The Canadian dollar showed its relationship quite with the oil markets quite well as the currency gained against most currencies around the world.

I've been thinking for the last 2 weeks that the Euro was due for either a retracement or a reversal...so it was no surprise that last Friday when I looked at the daily chart for the Euro and noticed a really nice reversal set-up of a support zone.

Check out this update on our expert's previous AUD/USD Forex signal, and stay on top of the market.

Currency: GBP/USD Trend Expected Direction: Down Strategy: Ichimoku Kinko Hyo

While not being one of the most favored pairs in the FX markets, the AUD/NZD pair can be quite useful. On the negative side, the spread is normally fairly wide at best, and the action is choppy most of the time.

EUR/JPY continued to sell off on Monday as traders run from the Euro overall. Trading volume was almost non-existent, and as a result the moves in most pairs were muted. The breaking below the 100 mark is actually parity in this pair as the Yen is denominated in sequences of 100, and this shows just how weak the Euro actually is at this point in time.

The EUR/USD pair had a quiet day as traders started to come back from holiday on Monday. The pair continues to tread water between the 1.29 and 1.30 levels, and looks set to experience further weakness going forward.

Currency: NZD/USD Trend Expected Direction: Down Strategy: Ichimoku Kinko Hyo

Currency: AUD/USD Trend Expected Direction: Down Strategy: Ichimoku Kinko Hyo

The much maligned Euro started 2012 where it left off in 2011, finding itself under increased pressure following today’s announcement that activity in the Eurozone manufacturing sector dropped for the 5th consecutive month.

The Euro has hit it lowest point against the US Dollar since last February. As we all know, the Eurozone is facing many economic difficulties, which is pressuring the currency against the US Dollar.

It's a new year, a new week - and it's time to start trading Forex with the proper guidance! Check out this weekly Forex forecast from an expert to get on track now.