Recapping the Majors
EUR/USD– The Euro tanked hard for the 2nd straight day today as it continued to plummet below 3600. The pair finished yesterday just above 3600 but the Euro bears pushed the pair lower in today’s session. The pair has fallen the past 4 trading sessions and has fallen over 200 pips from 3800.
Result: The Euro dropped hard for the 2nd straight day as it continued to fall below 3600.
GBP/USD- The Sterling fell hard once again today as it dropped another 100+ pips and ended up just below the 2.0000 mark. The pair hasn’t been below 2.0000 since June 26th. The question now is whether or not the pair will continue to drop now that its back below 2.0000.
Result: The Sterling dropped for the 2nd straight day as it fell another 100+ pips today and closed just below 2.0000.
USD/CHF- The Swissy rallied once again as it just broke above 2100. The pair has been rallying since August 5th when the pair bottomed out at around 1800 and has since risen over 300 pips.
Result: The Swissy rallied strong once again as it rose above 2100, giving the Dollar over a 300 pip boost against the Swissy since August 5th.
USD/JPY- The Dollar fell slightly against the Yen today as it fell below the 118.00 mark today. The pair has been very choppy since July 26th and its been hard to find a steady direction or trend.
Result: The Dollar fell slightly against the Yen as it slumped just below 118.00 today.
Chart Analysis: What’s going to happen next?
Ok so I was totally wrong about the Euro reaching 3850 and it has since dropped all the way down to 3550. 4hr stochastics are in oversold territory and daily stochastics are just entering oversold territory. I think we’ll see a little more bearish movement before the pair moves back up. Currently the pair is trading around 3540 and I would watch for it to drop to 3500 sometime tonight or tomorrow.
The Cable is really starting to fall now. The pair has dropped over 400 pips in the past 4 trading sessions and is now below 2.0000 again. This could be significant since this was a major resistance area before. Now we’ll have to see if the pair will continue through this level or bounce back up. 4hr stochastics are in oversold territory and daily stochastics are heading into oversold territory. The price is also at its 100 SMA on the daily chart which provides another resistance point. Technical indicators say this pair is going to reverse back up but I think we’ll see the pair fall a little further first. Currently the pair is at 9983 and I would watch for it to drop to 9950 before moving back up.
The Swissy continued to rise today and broke through the 2100 mark. 4hr stochastics are in overbought territory and daily stochastics are just now heading into overbought territory. I do think the pair will fall soon but I would watch for it to head up to its 100 SMA on the daily chart at around 2165 first.
The USD/JPY is looking ugly right now as it has been trading sideways for a while now. This makes it hard to find a reliable trend. For now I will stay away from trading this pair.