Yo Yo Yo! It’s been forever since I’ve looked a chart and I’m so pumped to get back in the market! Me and Pip Surfer took a nice little summer break as we chilled out, and enjoyed the sunny weather. But as with all good things, it had to come to an end and I feel more refreshed than ever to get back in the Forex and make me some serious pips… So let’s get crackin!
Recapping the Majors
EUR/USD- The Euro surged strong today after it had been settling around the 3600 level for the previous 5 trading sessions. Today the pair skyrocketed past 3700 like it was a hot knife on butter and still was able to close above the 3700 mark.
Result: After staying quiet for the past few days the Euro rallied strong today as it surged over 100 pips and surpassed the 3700 level.
GBP/USD- The Sterling rallied for the 2nd straight day today as it made a new 15 year high and sliced through the 2.0200 level. The pair looked like it was retreating after it hit the 2.0200 level on July 3rd as it proceeded to fall down to 2.0100, but the past 2 days the Sterling fought back hard and rallied over 150 pips!
Result: The Sterling rallied hard for the 2nd straight day and made a new 15 year high as it sliced past 2.0200 and settled around the 2.0250 mark.
Result: The Swissy dropped over 100 pips today as it broke below 2100 and now looks poised to fall to 2000.
USD/JPY- The Dollar took a big hit today as the Yen pushed it down 150 pips and took the Dollar back below 123.00 and pummelled it to 122.00. The pair hit a high at 124.00 back on June 21st (ironically that was the last day I had a post) and has since edged its way down.
Result: The Dollar plunged hard today as it fell 150 pips against the Yen and is now facing support at the 122.00 level.
Chart Analysis: What’s going to happen next?
The Euro has been pushing the envelope as its currently at a level it hasn’t been at since way back in 2004. Daily stochastics have been in overbought territory for a few days now and 4hr stochastics are heading into overbought territory. The pair may rise slightly higher and I would expect it to find resistance at the 3750 level followed by a drop back towards 3700.
The Sterling is off the charts right now….literally! The pair is currently at a 15 year high and the question now is when will it end! Both 4hr and daily stochastics are near overbought territory which means it might too much longer before the pair drops. The pair may drift higher towards 2.0300 but will probably find resistance there and fall from that point.
The Swissy seems to have completed what looks like an ugly head and shoulders pattern. If the pattern holds true then I would expect the pair to drop all the way down to 2000 since that is where the neckline seems to be.
The Yen finally made a significant drop but may have found support at the 122.00 level and the 50 EMA. However both the 4hr and daily stochastics are trending down so I’m not sure if the pair is actually done dropping. If the pair can make a significant break of the 50 EMA at 121.90 then I would expect the pair to continue dropping down to 121.50.