The dollar was once again all over the place today. It lost against the Euro, but gained against the Cable, Swissy, and Yen. It’s been a weird week in the world of forex as far as movement goes but at least we’re seeing some kind of action. Hopefully we can find something we can get in on. Now let’s take a look at the charts…
The Euro made yet another run against the dollar today as the ECB kept rates steady. They had a hawkish tone which is why the Euro continued to rise. The price has now broken past its 38% Fib line on the daily chart and stochastics are still trending up. 4hr stochastics are in overbought territory but have not crossed down yet which could mean a little more upward movement. We may see the Euro reach 3050 before it decides to fall back down, or it could rally to its 50% Fib line on the daily chart which is around 3080.
The Cable fell to its 50 EMA on the daily chart and is now just under 9600 at around 9585. 4hr stochastics are near the oversold territory and appears to be crossing up while the daily stochastics have crossed down after trending up for the past few days. Again, it’s still hard to see a clear indication of where this pair is going so I’m going to stay out until I feel a little more comfortable getting in. My gut instict tells me that the pair is going to make another run at its 61% Fib line. Like I said before (even though I was wrong in that case), whenever the Cable makes a big daily candle in which the close is right near the high/low of the current direction, there is a good chance the trend will continue through the next day. Let’s see if that plays out tomorrow.
So my Swissy trade didn’t get triggered thanks to the Dollar giving it a nice butt kicking. 4hr stochastics are trending down while daily stochastics have just crossed up after trending down for the past few days. Once again I’m getting mixed signals so I’m going to stay out of this pair for now.
The Yen is once again getting a thorough beating from the Dollar as the pair shot up to 121.50 today. Currently the price is hovering right above 121.00 at around 121.15 and daily stochastics are trending up nicely with plenty of room before reaching overbought territory. The only dilemma is that the 4hr stochastics are trending down and are just leaving the overbought territory which means we could probably see a short term retracement. I’m thinking the pair will fall to its 50 EMA on the 4hr chart which is currently around 120.80 before it makes another run up.