Forex Daily Forecast, Analysis and Prediction

The first thing that I would mention is that it seems like we are trying to stabilize after a brutal sell off.

The first thing I notice is that we have bounced from the 50% Fibonacci retracement level, an area that of course, a lot of people will be paying attention to.

Since breaking down the ascending price channel, bears have created a new bearish channel/wedge pattern which has pushed the price down to a supportive area around $1.0800.

The GBP/USD exchange rate has stabilized as it ended its recent sell-off.

Bitcoin price made a brief bullish breakout on Monday and then retreated as the US started moving Silk Road coins.

The AUD/USD pair remained under pressure this week.

The US dollar initially pulled back just a bit in the early hours on Monday, only to turn around and show signs of life and rally against the Indian rupee.

The euro has shown itself to be very strong against multiple currencies around the world, especially when it comes to emerging market currencies.

The exchange in London initially tried to rally during the trading session on Monday, but it gave back gains rather quickly.

The British pound initially has shown a lot of volatility during the trading session on Monday, but quite frankly, it looks as if it is going to settle on some kind of sideways action.

The West Texas Intermediate Crude Oil Market, or the US oil market, fell significantly during the trading session, again on Monday, as it looks like we continue to see a lot of negativity out there.

The dollar-Turkish lira pair rose at the beginning of this week, following a slight increase in the Turkish lira at the end of last week.

At the end of last week's trading, the GBP/USD price tried to rebound higher, but its gains did not exceed the 1.2877 level and closed the week's trading stable around the 1.2863 level.

This week, the USD/JPY will experience significant volatility due to the policy announcements from both the US Federal Reserve and the Bank of Japan.

Traders who were convinced the incremental higher price action in the USD/MXN exchange rate was temporary when it happened a week and a half ago were rudely treated to more buying action in the currency pair last week.