Euro and Sterling both rise against the Dollar

Recapping the Majors

EUR/USD– After 2 days of some slight drops the Euro made a nice rally today as it soared to 3550. The pair fell from 3500 to 3450 over the past 2 days but rallied 100 pips today as it easily broke through 3500 and peacked at 3550.

Result: The Euro rallied 100 pips today as it went from 3450 to 3550 after falling off the past couple of days.

GBP/USD- After see-sawing the past few days, the Sterling rallied over 100 pips today as it broke through the 9900 level. The Sterling has been rising up slowly ever since the pair hit a low at 9650 back on August 16th.

Result: The Sterling rallied over 100 pips today as it broke through 9900 and peaked around 9930.

USD/CHF- The Swissy stayed pretty still today and has been flat for the past 3 days now. The pair reached a high at 2213 back on August 15th and dropped over 100 pips down to 2050 the following day where it has been staying at.

Result: The Swissy stayed still for the 3rd straight day now at just above 2060 after falling over 100 pips back on August 16th.

USD/JPY- The Dollar rallied almost 150 pips against the Yen today as it climbed just above 115.00. The USD/JPY took a major dive on August 15th when the pair dropped 500 pips before retracing back up to around 114.00. Since then the pair has gradually been climbing back up and seems to be somewhat stabilizing now.

Result: The Dollar rallied 150 pips against the Yen as it pushed through to just above 115.00

Chart Analysis: What’s going to happen next?

EUR/USD

The Euro has been slowly crawling back up ever since it bottomed out at 3360 back on August 15th. The pair looks like it could still be headed up as both 4hr and daily stochastics trending up. However, the pair does face some resistance at the 100 SMA on the daily chart at around 3550. If we see a good break of the 100 SMA I would watch for the pair to head back up to 3600 which is also where the 50 EMA is on the daily chart.

GBP/USD

Like the Euro, the Sterling has also been slowly climbing back up. 4hr and daily stochastics are trending up with 4hr stochastics in overbought territory. The pair is also facing resistance at around 9930 as that is where the 50 EMA is on the 4hr chart. I still think the pair will move up but we’ll have to see what happens. If the pair breaks the 50 EMA on the 4hr chart (if it hits 9950) I would watch for it to head up to around 2.0000.

USD/CHF

The Swissy has been staying quiet the past few days after dropping nicely on the 16th and I think we’ll continue to see the pair drop. Both 4hr and daily stochastics are trending down which confirms my bearish bias and I would look for the pair to continue to fall down to around 2000.

USD/JPY

Well the USD/JPY sure did make some noise on the 15th of this month as it dropped about 500 pips!! Now the pair has moved back up and is trading just above the 115.00 mark. Daily stochastics are trending up which leads me to believe that we’ll see the pair continue to move to the upside. Currently the pair is trading around 115.15 and I would look for it to move up to its 50 EMA on the 4hr chart which is around 115.65.