Forex Daily Forecast, Analysis and Prediction

The EUR/USD exchange rate rose to the important resistance level at 1.2000 for the first time in years after the Federal Reserve delivered its first interest rate decision of the year. It was trading at 1.1950 on Thursday morning, a few points below this week's high of 1.2087.

The German DAX has dipped a little bit during the trading session, as we are still looking for momentum, and the FOMC is likely to provide that globally. With this, the market looks like it is trying to launch higher again.

The Australian dollar has been somewhat noisy against the Canadian dollar during trading on Wednesday, as the Bank of Canada took center stage. That being said, nothing significantly changed as far as the “big picture” is concerned.

Bitcoin is currently caught between a couple of massive driving forces, as we are trying to sort out where risk appetite is going globally. This continues to be a noisy place to trade, but it is now offering a well-defined range.

The FTSE 100 has retreated on Wednesday from its intraday highs as risk-off rotation in London has shifted capital elsewhere. However, the overall trend is still strong at this point.

Bitcoin price continued its consolidation on Thursday after the Federal Reserve delivered its interest rate decision and as ETF outflows continues. The BTC/USD pair was trading at 89,000 on Thursday, inside a range it has been in the past few days.

The gold market continues to rise overall, as the US dollar weakness continues to favor a rising metals market. That being said, we are still waiting for the Fed.

The AUD/USD exchange rate continued its strong upward trend, reaching its highest level since November January 2023, after the Federal Reserve interest rate decision and the strong Australian inflation data. It rose to a high of 0.7017, much higher than last year's low of 0.5915.

The Euro STOKX 50 is experiencing significant downward pressure during the session on Wednesday, as it pulls back from a recent all-time high.

The Euro has finally made a decision to break out. However, the one problem is that it did it the day before a FOMC press conference. Still a bullish look though.

The CAD/CHF pair isn’t one I focus on a lot, but it could be a good “back door” way of playing the CHF strength, or central bank intervention later.

The US dollar continues to see a lot of selling on Tuesday in the overall Forex markets, but in the USD/JPY pair, its had an entirely different foe over the last couple of sessions.

The US dollar has fallen again against the Mexican peso, breaking below the hammer from the previous session, a sign of weakness I often trade. This is a market that pays you to stay short, in the “carry trade.”

The USD/BRL closed yesterday around the 5.1847 ratio after facing another round of strong selling, and traders should be braced another dose of volatility on today’s opening.