The Sterling rises as traders await the BOE interest rate decision

Recapping the Majors

EUR/USD– The Euro stayed pretty quiet early on in the day as it floated higher towards 3550. Later in the day however, the Dollar picked up some strength and pushed the Euro down to around 3520 and looks as though it may push it down to 3500.

Result: The Dollar pushed the Euro slightly lower down to 3520 and seems poised to take it all the way down to 3500.

GBP/USD The Sterling rallied strong today as traders are anticipating the rate hike by the BOE tomorrow. The pair surged at the open of the US market and rallied to 2.0000 before settling back down later in the day below 9950 at around 9930.

Result: The Sterling rallied hard today and rose up to 2.0000 before falling back down to 1.9930.

USD/CHFThe Dollar fell slightly lower to the Swissy early on in the day as it touched 2150 but picked up steam shortly after and is now currently at 2190. The pair looks like it may find resistance at the 2200 as stochastics on both the 4hr and daily chart are showing overbought levels.

Result: The Dollar edged slightly higher today against the Swissy as it made another run towards 2200.

USD/JPY The USD/JPY pretty much stayed put today as it has been hanging around the 120.00 level. The pair fell slightly early on as it neared 119.50 but ended back up towards 120.00.

Result: The Dollar pretty much stayed put against the Yen as it stayed near the 120.00 level for the 2nd straight day.

Chart Analysis: What’s going to happen next?

EUR/USD

The Euro continued to fall today but still couldn’t reach the 3500 level. Both 4hr and daily stochastics are near oversold territory and are trending down which indicates that we could see the pair continue to drop down and actually hit the 3500 mark. Look for the pair to fall to that level within the next day.

GBP/USD

Yikes! It looks as though traders are really anticipating the BOE to raise their rates by .50 rather than .25 as the pair surged back up to 2.0000 and stopped me out of my trade. With the BOE interest rate decision tomorrow I expect this pair to be very volatile. If the announcement is for a .50 rate increase I would expect this pair to head past 2.0000.

USD/CHF

The Swissy nudged up just a little higher but still hasn’t hit 2200 like I thought it would. 4hr stochastics are in overbought territory and daily stochastics are trending up and are just now heading into overbought territory. I still expect the Swissy to find resistance at the 2200 level, and I believe it will fall from there.

USD/JPY

The USD/JPY pretty much hung around the 120.00 level again today and I’m still bearish on the pair. Daily stochastics are still trending down and are in overbought territory which leads me to believe that the pair will fall. However, 4hr stochastics are trending up so we may see the pair float slightly higher to around 120.00. Overall, I would watch for the pair to make its way down to 119.00 in the next few days.