The Euro is back to 3600!

Recapping the Majors

EUR/USD– The Euro continued its rally again today as it surged higher and hit the 3600 mark once again. The pair hovered around 3550 early on in the day and surged at the start of the US session. Today marks the 3rd straight day of gains made by the Euro against the dollar after the Euro had fallen over 150 pips when it reached an extreme high of 3650 on April 29th.

Result: The Euro rallied once again and surged to 3600 once again.

GBP/USD- The 50 EMA on the daily chart held support as the pair was able to rally back up to 9850 after being stuck at support for the past few days. The pair started off dropping early, moving as low as 9750 but seemed to be exhausted at that point and rallied strongly short after. The pair then surged to as high as 9871 before finally settling just below the 9850 mark.

Result: The Sterling rallied back as it rose back above 9800 and settling right around 9850.

USD/CHF- After hanging around the 2200 resistance level for the past several days, the Swissy finally dropped below its 50 EMA on the daily chart and fell to as low as 2125 before making its way back up to around 2150. They pair had been ranging between an upper bound of the 2200 level and a lower bound of the 50 EMA which was around 2170 for the past few days, and today marks its first breakout since it made the strong rally to 2200 back on May 7th.

Result: The Dollar finally fell to the Swissy after several days of consolidation and moved back down from 2200 to 2150.

USD/JPY- The USD/JPY stayed pretty quiet as the pair barely even moved today. The pair ranged in between 120.50 and 120.00 but ended up settling right back near its open at around 120.30.

Result: The Dollar once again stayed put as the the USD/JPY pretty much stood still right around 120.30.

Chart Analysis: What’s going to happen next?

EUR/USD

Well the Euro decided to continue its rally and it made its way back up to 3600. 4hr and daily stochastics are both trending up so I think there is a good possibility that we will see this pair head back up to the 3650 mark. Remember, the last time the pair hit 3650, it dropped 150 pips so be careful around this level.

GBP/USD

Well the Cable did pierce through its 50 EMA on the daily chart and hit 9750 like I said it would yesterday, but then it gained momentum and shot back up to 9850. Both 4hr and daily stochastics are trending up which indicates that there is a good chance we’ll see this pair continue to rally. The pair is currently testing slight resistance at its 50 EMA and 200 SMA on the 4hr chart but I think there is still a good chance that we’ll see the pair continue to move up to 9900 in the near future.

USD/CHF

Well after hanging around the 2200 for several days, the Swissy finally dropped. Now it is currently hanging around 2150. Daily stochastics are trending down nicely and have just now left overbought territory which tells me that a move to 2100 is probably a good bet at this point. 4hr stochastics are also trending down which confirms my short term bearish sentiment. Look for the pair to fall to 2100 sometime tomorrow.

USD/JPY

This pair is all out of wack. It’s really not doing anything at this point. We’ve seen it go from 119.50 to 120.50 over several days now, and as a result, the stochastics aren’t really telling us much. I would stay away from this pair at the moment, but there are still possible trades if you are aggressive. Currently the pair is at around 120.30. If the pair breaks 120.50 then look for the pair to head up to around 121.00. On the short side, if the pair can break 120.00 then look for the pair to head down towards 119.50.