Recapping the Majors
EUR/USD- The Euro once again rallied today but it did so with a slower momentum than yesterday. The pair started the day off around 3557 and headed up towards 3600 but fell slightly short and peaked around 3587 before settling back down around 3560.
Result: The Euro rallied for the 2nd straight day but moved at a slower pace today as it wasn’t quite able to reach the 3600 mark.
GBP/USD- The Cable rallied strong for the 2nd straight day as it soared almost 200 pips today. The pair started off at just above 9900 before easily slicing through 2.0000 and nearly hitting 2.0001. The pair finally cooled off later in the day and settled around the 2.0050 mark.
Result: The Sterling rallied strong once again as it broke the 2.0000 mark and settled around 2.0050.
USD/CHF- The Swissy once again stayed quiet for the 4th straight day as it simply bobbed up and down between 2050 and 2100. The pair has been at a standstill for the past 4 sessions which could be a sign for a breakout in the near future.
Result: The Swissy stayed still for the 4th straight day as it simply treaded between 2050 and 2100.
USD/JPY- The Dollar took the Yen on a wild ride today as it surged 200 pips higher before the Yen could settle it back down. The pair started at around 115.00 before making its way up to 117.00. The Dollar momentum didn’t last however and the Yen was able to bring the Dollar back down to 116.00 by the end of the day.
Result: The Dollar gained a cool 100 pips against the Yen yesterday as it moved from 115.00 to 116.00.
Chart Analysis: What’s going to happen next?
The Euro was able to crack the 100 SMA on the daily chart but didn’t quite make it to the 50 EMA at around 3600. Daily stochastics are still trending up which leads me to believe that we’ll still see some upward movement but the 4hr stochastics are trending down and are in overbought territory. If you are in a long trade, be prepared to weather the storm a little bit as we may see the pair sink a little tomorrow before it heads back up. Look for the Euro to head down to its 50 EMA on the 4hr chart where it should find support and bounce back up from there.
Well the Cable had a little more firepower than the Euro and as a result my target of 2.0000 was hit. Daily stochastics are still trending up which means more bullish movement in the medium term but 4hr stochastics are in overbought territory and seem to be trending down. The Cable is a volatile pair so it will probably make a wide range tomorrow. Currently the pair is trading around 2.0050 and I would watch for it to drop to around 2.0000 followed by a bounce back up to around 2.0100.
The Swissy is still right where it was when I wrote my analysis yesterday. Both 4hr and daily stochastics are still trending down and since the pair has been very quiet lately I would watch for it to have a nice breakout move to the downside in the near future.
Well the USD/JPY moved up like I said it would yesterday but it did retrace back 100 pips towards the end of the day, which brought the pair right back to around 116.00. Daily stochastics are trending up which indicates more bullish movement in the medium term but 4hr stochastics are trending down which means some bearish movement in the short term. Look for the pair to drop to its 50 EMA on the 4hr chart before making another rally.