Recapping the Majors
EUR/USD- The Euro stayed relatively quiet once again as it barely ranged between 3400 and 3450. The pair fell early on but found support around the 3400 area as it bounced back up to around 3430. The pair has been hanging around 3400 for the past several days and it looks as though it may have found support there.
Result: The Euro stayed quiet once again as it found support at 3400 and hovered near the 3450 level again.
GBP/USD- The Cable broke support at its 50 EMA on the daily chart and proceeded to drop down to around 9750. The pair has been dropping slowly but surely ever since it hit a 15 year high back on April 17th at 2.0131. Today’s drop keeps the downward trend channel formed by the prolonged downtrend in tact.
Result: The Sterling fell against the Dollar today after it had rallied to 9900 yesterday and broke support at its 50 EMA on the daily chart and hitting the 9750 mark.
USD/CHF- The Swissy barely made a peep today as its total daily range was only about 40 pips and stayed right at 2250. The pair fell hard yesterday and touched the 2200 mark before retracing back up but it has taken a pause today, although it still shows signs of a further drop.
Result: The Dollar stayed still against the Swissy as it stayed right at 2250 today.
USD/JPY- For the 2nd straight day, the Yen stayed perfectly still as it continued to hover around the 121.60 mark. The pair has been in a long term rally but is showing signs of exhaustion as the pair has been ranging between 121.00 and 122.00 for the past 9 days.
Result: The Dollar once again stayed perfectly still as it hovered arounnd 121.60 for the 2nd straight day.
Chart Analysis: What’s going to happen next?
The Euro price action proved once again that the 3400 level seems to be a good support area for now. Both 4hr and daily stochastics are in oversold territory which gives me a strong feeling that we’ll see the Euro bounce back up real soon. Look for the Euro to make a run to 3500 sometime tomorrow.
The Cable fell to 9750 like I said it might yesterday and I think we could still see it fall further. 4hr stochastics are in oversold territory which means we could see the pair rise towards 9800, but daily stochastics are trending down which leads me to believe that after a short retracement to the upside, we should see the pair continue to fall down to 9700.
The Swissy pretty much stayed still today as it hovered around 2250 but I still think we’ll see the pair make another drop to 2200. 4hr stochastics are trending up so I think we may see the price continue to hover around the 2250 level a little longer, but daily stochastics are trending down nicely which indicates that we could see the pair resume its drop down to 2200.
Same thoughts on the USD/JPY. I feel that the long term uptrend is finally seeing exhaustion and I think we will see the pair drop to 121.00 in the next day or so.