Recapping the Majors
EUR/USD– The Euro has been doing some serious dropping against the Dollar as it fell down to 3300. The past couple of days however, the Euro has surged back and has managed to pull above the 3400 mark.
Result: The Euro rallied against the Dollar for the 2nd straight day and has gained back 100 pips as it moved from 3300 to 3400.
GBP/USD- The Sterling rallied for the 2nd straight day and has now surpassed the 9800 mark. The pair has rallied almost 150 pips in the past 2 days.
Result: The Sterling rallied hard today as it pushed past the 9800 mark.
USD/CHF- The Dollar finally fell back down after rallying against the Swissy for the past 7 days. The pair surged past the 2450 mark but has finally cooled off and dropped back down to 2400.
Result: The Dollar finally cooled off today as it dropped back down to 2400.
USD/JPY- The Dollar edged higher and has been surging for the past 7 days. Today the pair rallied slightly to 123.50 but seems to have slowed down its surge.
Result: The Dollar edged higher to around 123.50 but has slowed down its momentum.
Chart Analysis: What’s going to happen next?
The Euro has been tanking but has managed to start its retracement. Daily stochastics are still trending up but 4hr stochastics are in overbought territory. The pair also faces resistance at its 50 EMA on the daily chart. Look for the pair to drop down to around 3400 and maybe even 3370 before moving back up.
The Cable has been rallying for the past 2 days but looks like it may be falling back down soon. Daily stochastics are trending up which means we could still see the pair rally but 4hr stochastics are in overbought territory. Currently the pair is at 9830 and I would watch for it to move back down to at least 9800 before moving back up.
The Swissy has dropped the past 2 days after a long string of runs. Daily stochastics are trending down and are in overbought territory while 4hr stochastics are trending up. Look for the pair to move up to around 2450 before continuing its drop.
Well the Yen never seems to want to go down even though all signs point towards a drop. I would hold off on this pair for now but both 4hr and daily stochastics are in overbought territory and show signs for the pair to fall.