Recapping the Majors
EUR/USD- After the past 2 days of rallies, the Euro cooled off today as it fell back to 3500 where it found support. The pair had risen the previous 2 days after finding support at 3400 but could not continue its rally today.
GBP/USD- The Sterling stayed quiet today as it ranged between 9900-9950. The pair made significant gains the past several days but has seemed to slow down the past 2 days. The strong upward movements we’ve seen have also broken a long term downward trend channel which could also indicate more upward movement to come.
Result: The Sterling pretty much stayed still today as it bounced in between 9900-9950.
USD/CHF- The Dollar continued to fall today against the Swissy although it did lose some momentum. Early on in the day the pair dropped down to 2150 but soon retraced back up and has been settling around the 2170 mark. The Dollar has fallen 150 pips in the past 3 days after hitting resistance around the 2300 level.
Result: The Dollar continued to drop today as it fell down to as low as 2150 before settling around the 2170 mark.
USD/JPY- The Dollar fell for the 3rd straight day against the Yen today as it finally dropped to the 121.00 mark. The pair had been in a long term uptrend and has recently found resistance at the 122.00 level.
Result: The Dollar fell for the 3rd straight day against the Yen as it dropped down to 121.00
Chart Analysis: What’s going to happen next?
Well the Euro did end up falling back down to 3500 where it seems to have found support. I’m still bullish on this pair as daily stochastics are still trending up nicely. However, we may have to wait a little longer before the upward move starts up again as the 4hr stochastics are still trending down. Look for the Euro to make a push back up to 3550 sometime tomorrow.
The Cable pretty much stayed at a standstill today. 4hr stochastics are trending down while daily stochastics are still trending up. I’m also feeling bullish on this pair as the last few days of upward movements have broken the upper trendline of the downtrend channel. I think we’ll see the Cable hold support at 9900 and I would watch for the pair to make a move back up to 2.0000.
The Swissy is still continuing to drop but seems to have slowed down its pace a little. Daily stochastics are still trending down and with the way things are going, I would expect the Dollar to continue falling against the Swissy. Currently the pair is trading around 2170 and I would expect it to fall back down to 2150. If there is a clean break of 2150 with some good looking price action, I think we could see it move to as low as 2100.
After yapping about it for so long the Yen finally dropped to 121.00! For the moment the pair seems to have found support at this level but daily stochastics are still trending down nicely. I’ve been waiting too long for this pair to drop and I think it still has alot of juice to continue falling. Look for the Yen to keep dropping on down to 120.50.