Recapping the Majors
EUR/USD– The Euro failed to break resistance at its 50 EMA on the daily chart today and proceeded to bounce back down to 3400. The pair had risen for 3 consecutive days until it hit its 50 EMA at 3430 two days ago. Since then the pair has fallen back down to the 3400 mark.
Result: The Euro fell slightly today as it failed to break resistance at 3430 and moved back down to 3400.
GBP/USD- The Sterling rallied for the 4th straight day today against the Dollar as it broke through 9900 and got to as high as 9950. The pair has moved up 250 pips in the last 4 trading sessions.
Result: The Sterling rallied for the 4th straight day against the Dollar as it broke through 9900 and reached 9950.
USD/CHF- The Dollar once again edged lower as it broke below 2400 and neared the 2350 mark before bouncing back up and settling back around 2370. The pair has been gradually falling for the past 4 trading sessions after it reached a high at 2470 on June 12th.
Result: The Dollar dropped lower for the 2nd straight day as it broke below 2400 and neared the 2350 mark.
USD/JPY- The Dollar started off the day falling against the Yen as it neared the 123.00 mark but gained momentum later in the day and moved back above 123.50. The pair seems to be ranging now after it reached 123.50 back on June 14th.
Result: The Dollar rallied back against the Yen as it moved back up from 123.00 to 123.50.
Chart Analysis: What’s going to happen next?
The Euro failed to break resistance at its 50 EMA on the daily chart today and is now trading right at 3400. Daily stochastics are still trending up which indicates a long term uptrend but 4hr stochastics are trending down which leads me to believe we’ll see some short term drops. If the pair can break below its 50 EMA on the 4hr chart I would watch for the pair to fall down near 3350.
Well the Sterling just doesn’t want to stop as it rallied once again today. I thought it would find resistance at 9900 but the BOE minutes caused the pair to shoot to 9950. 4hr stochastics have now been in overbought territory for a long time now and I’m thinking we’ll see a retracement to the downside very soon. Daily stochastics are also in overbought territory which adds to my bearishness. Look for the pair to drop to at least 9900 or even 9850.
The Swissy came close to hitting the 2350 mark like I said yesterday but it didn’t quite make it there. Daily stochastics are still trending down which gives me good indication that we’ll see more drops but 4hr stochastics are trending up which could mean some short term rallies. I expect 2400 to hold as a resistance point and I would watch for the Swissy to make it back down to 2350.
The USD/JPY rallied back today and went above 123.50. The pair looks like its back in range mode. Daily stochastics are in overbought territory and 4hr stochastics seems to have peaked. I would expect the pair to move back from 123.50 back down to 123.00 sometime tomorrow.