Surprise Surprise…The Sterling Rises Again!

Recapping the Majors

EUR/USD- The Euro was once again unable to break the 3800 resistance level and ended up settling just underneath it. For the past 5 trading sessions, the pair has been testing that resistance level but each time has failed to close above it. These failed breaks make it look like the Euro may be headed under in the near future.

Result: The Euro was unable to break the 3800 level for the 5th straight trading session and may begin to fall soon.

GBP/USD- I said it before and I’ll say it again…the Sterling just won’t quit! It once again rallied strong today, slicing through 2.0500 and reaching a peack at around 2.0550. For the 3rd straight day, the Sterling has made new 15 year highs and today was no exception.

Result: The Sterling rallied hard for the 3rd straight day as it made yet another 15 year high, peaking at around the 2.0550 mark.

USD/CHF- The Swissy once again failed to break the 2000 support that it has been testing for the past 6 trading sessions now. The pair has come to a standstill after falling to 2000 back on July 10th.

Result: The Swissy stayed still right around the 2000 support level for the 6th straight time and is still unable to fall any lower.

USD/JPY- After a small rally yesterday, the Dollar once again fell back to its 50 EMA support on the daily chart at around 121.90 today. The pair has been ranging around the 122.00 level for the past few days and still seems to be holding support. At this point, it looks as though the pair is rangebound with no clear signs of a trend.

Result: The Dollar fell slightly today as it once again gravitated to the 50 EMA support on the daily chart at 121.90. At the moment the pair seems to be rangebound.

Chart Analysis: What’s going to happen next?

EUR/USD

The Euro still hasn’t been able to do much ever since it reached the 3800 mark. Daily stochastics are still in overbought territory and with the way the Euro has been moving the past few days I think it might be time for the Euro to drop soon. Currently the Euro is trading right near 3800 and I would watch for it to drop to around 3750 sometime tomorrow.

GBP/USD

The Sterling is acting like the Yen was about a month ago. It just won’t quit moving up! In fact the pair is making new 15 year highs each day. Both 4hr and daily stochastics are in overbought territory (which isn’t a surprise considering the movements) so technically we should see a drop soon. The pair hit resistance at 2.0550 today and I would look for the pair to drop down to 2.0500 some time tomorrow.

USD/CHF

The Swissy is basically doing the exact opposite as the Euro. It is stuck at support at the 2000 mark and has been unable to break it for the past several days now. Daily stochastics are in oversold territory and just like the Euro, since the pair can’t break support, I would expect this pair to rise in the short term. Look for the Swissy to make its way back up to 2050.

USD/JPY

The Yen has been ranging for the past few days and as a result, the Stochastics on both the 4hr and daily chart aren’t really giving much at the moment. The only thing I have to go by is the fact that the 50 EMA on the daily chart has been acting as good support and if it holds true I would expect the Yen to move back up tomorrow. Currently the pair is trading around 121.86 and I would watch for it to move up to its 50 EMA on the 4hr chart at around 122.25.

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