Chop Chop Choppy

EUR/USD

Well the Euro did drop to 4200 like I said it would yesterday, but it has since risen back up to just under 4250. Both 4hr and daily stochastics are trending down and there is still a bearish divergence on the daily chart. I’m still a big bear on this pair and I’m expecting it to drop back down to 4200 in the short term, and down to its 50 EMA on the daily chart in the longer term.

GBP/USD

As expected, the Cable continued its see-saw pattern and dropped today after rallying hard yesterday. Both 4hr and daily stochastics are trending down. There is also a bearish hidden divergence on the 4hr chart and a regular bearish divergence on the daily chart. These are all strong signs that the pair will fall. Currently the pair is trading around 2.0469 and I would watch for it to drop to at least 2.0400 by tomorrow.

USD/CHF

The Dollar didn’t do too much against the Swissy today. 4hr stochastics are trending down while daily stochastics are trending up. Currently the price around 1722 and it looks as though the pair is headed to 1700. We should find good support here and I expect the pair to bounce up from 1700 to around 1750.

USD/JPY

Mmmm..the Yen dropped right to my target of 114.00 today. I love it when trades run smoothly. Daily stochastics are trending up, and after today’s downward movement, 4hr stochastics are now entering oversold territory. The pair may fall a little lower, but I’m expecting the pair to bounce back up. I would look to go long on a breakout of 114.00 and set my target at around 114.30-114.50.

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 :
  • 8:30am ET- US Durable Goods
  • 10:00am ET- US New Home Sales

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

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