Recapping the Majors
EUR/USD- The Euro broke out of its comfort zone and rallied higher today as it climbed to 3500. It had been resting right above 3400, a critical resistance level, for a couple of days, and it looks like the bulls have taken control with today’s movement.
GBP/USD- The Sterling once again rallied to 9800 but was unable to penetrate that level. The pair has touched 9800 four times since April 1st but each time has been pushed back down. After hitting 9800 earlier in the day the pair quickly jumped back down below it and was unable to push any higher. Today marks the 3rd straight day of gains made by the Sterling but we’ll have to see if it can break that tough 9800 resistance level.
Result: The Sterling once again rose against the Dollar but has yet to make any significant gains past the 9800 mark.
USD/CHF- The Dollar rallied nicely early on in the trading day and made its way back up to its 38% Fib line as well as the 50 EMA on the daily chart at 2245. However, that resistance once again proved to be too tough for the Dollar and the pair proceed to drop like a rock to as low as 2131. What started as a Dollar positive day turned into a completely Dollar negative day as the Swissy one the late day battle.
Result: The Dollar made nice gains early on but ended up losing to the Swissy after a late surge.
USD/JPY- This pair once again stayed within the 119.00-119.50 range. The pair has been consolidating between this range now for the past 4 days. Ever since the pair broke 119.00 last week, it has been unable to make a decision as to where to go next.
Result: The Dollar pretty much lost the slight gain that it made against the Yen yesterday but the pair is still stuck in the 119.00-119.50 range.
Chart Analysis: What’s going to happen next?
Ahh well the good ol’ Euro once again surprised me as it rose higher than I expected and rallied all the way to 3500. The thing is that the daily stochastics are still trending up and are still barely in overbought territory which makes me wonder if the pair might still have some juice left to go even higher. 4hr stochastics have crossed down after just leaving overbought territory. The Euro may fall back to around 3450 but if daily stochastics continues to trend up then I’d expect to see another rise to 3500 for the Euro.
Well I was right about the pair moving back up to 9800, but I was wrong about it falling to 9700 first. Apparently the bulls are pushing this pair higher and are continuing to nudge at the 9800 resistance level. Daily stochastics are still trending up and 4hr stochastics are flat at the moment but it looks as though the bulls may have another rally in them. I think we may see the pair break 9800 and go to as high as 9850 sometime soon but I’m not sure if the pair will be able to sustain that level for very long and way may see it fall after that..
Well like I thought, the Swissy rose back to its 38% Fib line and 50 EMA on the daily chart and shot back down. It actually fell more than I thought. Both 4hr and daily stochastics are trending down which tells me that the pair should continue to fall. Currently it’s trading at 2166 and I think we’ll see it fall back down to the low of today at around 2131, or if the price action is strong it may even move down to 2100.
Once again the USD/JPY is stuck in between 119.00 and 119.50. I still have a bearish bias on the pair as the 4hr and daily stochastics are still trending down, with daily stochastics in overbought territory. I think we should see a break of 119.00 tomorrow followed by a drop to 119.50 which is where the 50 EMA is on the daily chart.