The Sterling rallies hard against the Dollar after the BOE minutes release

Recapping the Majors

EUR/USD- The Euro was all over the place today. Early on the Euro continued to fall and almost got down to 3400, but a sharp rally followed and pushed the pair higher as it raced to 3500. However, the momentum couldn’t last and the pair finally settled back down near its open at around 3450.

Result: The Euro made extreme highs and lows today but ended up right back where it started at around 3450.

GBP/USD- Today was the day of the Sterling. The Sterling rallied furiously after the BOE minutes were released and the pair shot up to almost 9900 today before settling back down to around 9850. Today is the 2nd straight day the pair has rallied after having fallin almost 400 pips since April 17th.

Result: The Sterling rallied hard against the Dollar as it surged back up to almost 9900 before settling back down to 9850 today.

USD/CHF- The Dollar met good resistance at the 200 SMA on the daily chart and continued to fall against the Swissy today. The pair got as low as 2250 but proceeded to move back up towards 2270. Today is the 2nd straight day the pair has fallen and it looks like it may continue to fall further.

Result: The Dollar slumped again today as it found resistance at the 2300 area and fell to around 2250 before moving back up slightly.

USD/JPY- The Dollar made another small push against the Yen as it made a new high at 121.86. The Dollar is still rallying higher against the Yen although its been a very slow process.

Result: The Dollar made another small gain against the Yen as it made a new high at 121.86 but failed to make any significant gains.

Chart Analysis: What’s going to happen next?

EUR/USD

The Euro did end up falling but didn’t quite make it to 3400 as it surged back up to 3500 before settling right back down around 3450. 4hr stochastics are trending up while daily stochastics are trending down and are almost in oversold territory. Look for the the Euro to make another run towards 3500 tomorrow which is also where the 50 EMA is on the 4hr chart.

GBP/USD

The Cable rallied hard today and it looks like the momentum may stay in that favor. Daily stochastics are trending up and have just left overbought territory which indicates that we could see more upward movement in the medium term. 4hr stochastics are also trending up but are now heading into overbought territory. Look for the pair to make another run to 9900 sometime tomorrow as the momentum from today may carry on into tomorrow.

USD/CHF

The Swissy has met resistance at its 200 SMA and the 2300 mark and the pair is now starting to fall. Both 4hr and daily stochastics are trending down with daily stochastics still in overbought territory. Look for the Swissy to continue to drop in the short term as there is a good chance the pair may fall back to 2250.

USD/JPY

The USD/JPY continues to rally even though we are seeing technical signs that the pair should fall. 4hr stochastics are trending down while daily stochastics are still in overbought territory. Currently the pair is trading around 121.70 and I would expect it to drop down to 121.50 and maybe even 121.00 in the near future.