Markets take a breather today

Recapping the Majors

EUR/USD– After rising back up to 3650 the Euro stayed undecided. Remember that 3650 is a very extreme high for the Euro and it will have a real hard time getting higher unless some fundamental catalyst can push it higher.

Result: The Euro rose back up to 3650 but stayed undecided today as the pair stayed right at that level.

GBP/USD- After dropping down to 9900, the Sterling rallied back strong and moved back up to the 2.0000 mark but has been unable to penetrate that level again which has now become a resistance point.

Result: Early on, the Sterling fell down to 9900 but rallied strong late in the day back up to around the 2.0000 mark.

USD/CHF- The Dollar fell early on back below the 2050 mark but held its ground and proceeded to rally back up to 2100 before settling back down to around 2070. The pair has now been ranging between the 2000-2100 level for 5 days now.

Result: The Dollar fell early but managed to rally back up to around 2070.

USD/JPY- Once again the Yen seems to be undecided after it broke past 119.00 and headed to 119.50. The pair now seems to be stuck right around the 119.50 area.

Result: The USD/JPY pretty much stayed put today at around 119.50

Chart Analysis: What’s going to happen next?

EUR/USD

If you’ve been following my posts, then you know how bearish I am on the Euro, especially at the 3650 level. 4hr stochastics are trending up which means we could see the pair continue to drift slightly higher, but daily stochastics look poised to fall and as a result, I also think the Euro will fall as well. Look for the pair to hang around 3650 and may edge up to 3670 before falling back down towards 3600.

GBP/USD

Well the Cable is once again testing the 2.0000 mark which should be a good resistance level since it fell below that level on April 25th. 4hr stochastics are trending up but daily stochastics still seem to be trending down so I’m still bearish on this pair. Look for the Cable to hang around the 2.0000 level or maybe even a little higher (2.0030) before it falls back down towards the 9950 area.

USD/CHF

The Swissy has been ranging and its kind of hard to tell where it may be going. 4hr stochastics have crossed down while daily stochastics are still trending up. Since the pair has been ranging between 2000-2100 and just hith 2100, I think we’ll see the pair fall in the short term. Look for the pair to drop to around 2040 tomorrow.

USD/JPY

The Yen has been holding steady at around 119.50 but it may not stay there for long. 4hr stochastics have crossed down and daily stochastics looks like its about to cross down after being in overbought territory. The 50 EMA and 100 SMA on the 4hr chart have converged at the 119.00 level which looks like a good support area. Look for the Yen to fall to that level sometime tomorrow.