Recapping the Majors
EUR/USD– The 3600 proved to be a good resistance point as the Euro shot back down and fell to 3500 today. The Euro had been rising for the past 3 days but fell hard during the US session.
Result: After 3 days of rallying, the Euro fell 100 pips against the Dollar as it went from 3600 to 3500 today.
GBP/USD- After bouncing off support yesterday and moving to 9850, the Cable dropped back down to its 50 EMA support on the daily chart at around 9780. The pair has been testing this support level for the past few days and shows some indecision as the market has not pushed this pair in any particular direction.
Result: The Sterling fell back down to support at the 50 EMA at 9780 after rallying against the Dollar yesterday. The pair is in consolidation mode.
USD/CHF- The Dollar seemed to show a feigned neutrality yesterday as it bounced down from its resistance at 2200. Today however, the Dollar made a strong comeback and pushed through the 2200 resistance and came very close to peaking at 2250.
Result: After falling to the Swissy yesterday, the Dollar rallied hard and pushed through the 2200 resistance level and is now near the 2250 mark.
USD/JPY- The USD/JPY finally showed some signs of life as it broke through the 120.50 resistance level and headed towards 121.00. The pair got as high as 120.81 before cooling off and has been gradually getting higher since way back, starting on March 4th. The question is whether or not the pair will continue to rise or if this long term rally is exhausting.
Result: The Dollar made another push forward and broke past 120.50, making it to as high as 120.81 today.
Chart Analysis: What’s going to happen next?
Ok so I was completely wrong on almost my whole analysis yesterday but what can you do? That’s the market for ya! Today, the Euro fell back down to 3500 after rallying up to 3600 yesterday. 4hr stochastics are trending down but even with today’s drop, the daily stochastics are still trending up. I think we may see the Euro rally back up to around 3600 but since 4hr stochastics are still trending down, we may see a little more droppage in the short term.
The Cable fell right back down to its support at the 50 EMA on the daily chart. 4hr stochastics are trending down and daily stochastics have flattened out due to the fact that the pair has been ranging for the past 4 days. Currently the pair is at around 9790 and I think we’ll see the pair fall back down to 9750 in the short term, but after that it’s hard to say where it could go next since the Cable has been in range mode the last few days.
The Dollar pulled a sneak attack against the Swissy as it dropped from 2200 yesterday but then made a strong comeback and actually broke through. The pair almost hit 2250 but didn’t quite make it. 4hr stochastics are still trending up so I think there is a possibility that the pair will still have enough juice to make it to 2250 but daily stochastics are still trending down so if you’re looking to go long, make sure to watch your trades closely for any sign of a reversal to the downside.
Well out of all my analysis fumbles yesterday, I was actually halfway right on the USD/JPY. The pair broke through 120.50 but it couldn’t get to 121.00 like I thought it would. Currently the pair is trading around 120.73 and both 4hr and daily stochastics are trending up so I’m still bullish on the short term for this pair and think we’ll still see it rise to 121.00 some time tomorrow.