Recapping the Majors
EUR/USD- The Euro continued to fall today as it dropped almost 50 pips, falling to 3600 today. The pair started off at just under 3650 and rallied to as high as 3680 before falling hard until finally coming to a stop at around 3600. Today is the 2nd straight day the Euro has fallen against the Dollar.
Result: The Euro continued to fall as it dropped from 3650 to 3600 against the Dollar today.
GBP/USD- The Cable also continued to drop against the Dollar today as it fell almost 100 pips. from 2.0124 to 2.0034. The pair started off at 2.0124 and rallied slightly to as high as 2.0141, but sooned tanked and dropped to its 100 SMA on the daily chart at 2.0025 before finally settling at around 2.0034. Today is the 2nd straight day the Sterling has fallen against the Greenback.
Result: The Sterling fell for the 2nd straight day today as it dropped almost 100 pips from 2.0124 to 2.0034.
USD/CHF- Unlike the Euro and Sterling, the Dollar did little to affect the Swissy today. The pair opened up at 2030 and dropped below 2000 to 1960 before climbing just above 2000 to 2008. So you can see that it was another uneventful day for this pair as the the open and close range still fell between 2000 and 2050.
Result: The Dollar stayed pretty still against the Swissy for the 2nd straight day as it simply stayed between 2000 and 2050.
USD/JPY- The Dollar dropped like a rock today against the Yen as it lost over 150 pips and fell to 114.50. The Yen pretty much took the Dollar out from the start as it opened up at 116.00 and continued to move lower without even flinching.
Result: The Dollar dropped hard against the Yen today as it lost over 150 pips and moved from 116.00 to 114.50.
Chart Analysis: What’s going to happen next?
The Euro ended up falling to 3600 as I predicted yesterday (call me Nostradamus) and has now seemed to find slight support there at the moment. 4hr stochastics are deep into oversold territory while daily stochastics have just crossed down in overbought territory. So you can see I have conflicting indications. Short term says we may see a retracement to the upside and medium term says we’re just seeing the beginning of a longer term drop. There are alot of moving averages around that 3600 mark so I’m not really sure if we’ll see a strong move down tomorrow. Look for the Euro to stay kind of steady and retrace a little to the upside, but I think after that we should continue to see the pair to fall.
The Sterling also fell to my target today and has now found support at 2.0000. Similar to the Euro, 4hr stochastics are in oversold territory while daily stochastics have crossed down near the overbought region. I think we’ll see the Cable hover around this 2.0000 mark for a while, but I’m expecting to see more drops in the medium term.
The Swissy is boring right now but sometimes the boring times are the best times to find trade opportunities since usually a breakout will occur. So the Swissy is chillin right around 2000 and has pretty much been chillin there for the past 2 days. Both 4hr and daily stochastics are trending up which means we could see the pair to move up. My prediction is that the Swissy will move on up to its 50 EMA on the daily chart around 2083.
Haha! Wow! I said that I could see the Yen move down to 115.50 but wasn’t too confident about that theory. Turns out, the Yen dropped down to 114.50 and some change! Both 4hr and daily stochastics are trending down with 4hr stochastics in oversold territory. I think we’ll see the pair continue to head down but watch for it around the 114.00 level as that might be a good support level for it.