Recapping the Majors
EUR/USD– The Euro stayed very quiet today as it barely even moved 30 pips in total range. The pair fell early on and looked as if it was headed to 3350 but it found support at its 100 SMA on the daily chart and bounced back up to around 3390.
Result: The Euro fell slightly but didn’t make any significant moves.
GBP/USD– The Sterling finally retraced today after 4 days of strong rallies. The pair fell back down from 9950 to 9900 but ended up moving back up late in the day and closed just slightly under its open at 9925.
Result: The Sterling pretty much stayed still today as it closed just below its open at 9925.
USD/CHF– The Dollar fell early on as it broke through its support at its 50 EMA on the 4hr chart but made a late rally and broke above 2400 again and closed at 2415. This is the first time the Dollar has won against the Swissy in the past 4 trading sessions.
Result: The Dollar rallied for the first time in the past 4 trading sessions and broke back above 2400, closing at around 2415.
USD/JPY– The Dollar once again edged slightly higher but didn’t make any significant gains against the Yen. The pair did drop below 123.50 early on but rallied later in the day closing above the 123.50 mark at around 123.64.
Result: The Dollar edged up slightly against the Yen, closing above the 123.50 mark at around 123.64.
Chart Analysis: What’s going to happen next?
Well it looked like the Euro didn’t have enough juice to make it down to 3350 and seems to have found support at its 100 SMA on the daily chart around 3370. Both 4hr and daily stochastics are trending up and I would watch for the Euro to travel back up to its 50 EMA on the daily chart which is right around 3426.
Well the Sterling is showing signs of a drop on the charts. 4hr stochastics are trending down and daily stochastics are in overbought territory. The daily chart is also showing a hidden bearish divergence which is a good indication that we’ll see a reversal sometime soon. Look for the pair to fall around 9850 in the near future.
The Swissy pulled a 180 and rallied back up today above the 2400 mark. Daily stochastics are still trending down nicely and I would expect the pair to resume its downtrend. Look for the Swissy to fall somewhere near the 2350 mark.
The USD/JPY is once again acting crazy so its hard to really make a good prediction. Of course, both the 4hr and daily chart have been in overbought territory for an extended period of time which technically speaking, means that we should see the pair fall real soon. My guess is that the pair will drift up to 124.00 but then fall back down towards 123.50