Another Day, Another See-Saw Battle

EUR/USD

Of course the Euro rallied once again. This time it broke through 4300 and reached that peak at 4350 like it did back on October 21st. 4hr stochastics are in overbought territory and there is still a bearish divergence showing on the daily chart. I am still bearish on this pair and I am looking for it to fall back down to 4200 and I still think it will reach its 50 EMA on the daily chart within the next week or so.

GBP/USD

The Cable continued its see-saw pattern again today as it bounced back up to 2.0550 after falling to 2.0450 yesterday. 4hr stochastics are trending down and daily stochastics are entering overbought territory again. I am also still seeing a bearish divergence on the daily chart. So you can imagine that I am still bearish on the pair, given all the technical indications. Plus if the Cable continues its pattern, then we should see a drop tomorrow, since the pair rallied today.

USD/CHF

Well the Swissy ended up falling through 1700 and didn’t find support until 1650. Right now, the pair is looking like it will rally in the short term. 4hr stochastics are in oversold territory and it appears as though a bullish hidden divergence has formed. I would look for the Swissy to move up from 1650 to 1700 some time tomorrow.

USD/JPY

Well the Yen did drop below 114.00 but it never came back up. Right now both 4hr and daily stochastics have crossed down and appear to be heading towards oversold territory again. I don’t really have a strong bias on the Yen right now, but it could continue to move down to 113.50 some time tomorrow.

I’m not really big into fundamentals but I feel that they are important to discuss. In this section I will be posting fundamental tidbits that I find interesting from various sources. If you find an article that you think would benefit everyone, please email me (Big Pippin) with your username, the article, and a link to where members can read the entire article.

Now onto the Fundamentals:
  • UK September retail sales saw the highest annual growth in 3 years:

    • The Office for National Statistics reported that retail sales in September rose 6.3 pct from a year ago, the highest rise since September 2004 and above analyst expectations for a 5.6 pct increase. In August sales rose 4.8 pct year-on-year, revised down from the earlier estimate of 4.9 pct.
News events to watch for tomorrow :
  • Nothing major is coming out tomorrow

For a list of all of tomorrow’s news events, check out our Forex Calendar