The Swissy pushes down the Greenback for the 2nd straight day!

Recapping the Majors

EUR/USD– The Euro continued its rally today as it reached a peak at 3550 before settling back down to 3500. This marks the 2nd straight day of gains for the Euro after it had previously been sitting on support at 3400.

Result: The Euro rallied for the 2nd straight day against the Dollar, reaching a high at 3550 before settling back down around 3500.

GBP/USD- The Sterling rallied higher early on in the day against the Dollar as it pierced through 9950. Later in the day however, the Sterling lost momentum as the Dollar pushed it back down to around 9920. The pair has been rising for the past 3 days now and it may be showing a hint of exhaustion.

Result: The Sterling showed strength early on in the day as it made a new high, but ended up right back near its open at around 9920 which could indicate some exhaustion.

USD/CHF- The Dollar fell hard for the 2nd straight day as it plummeted through the 2200 mark, reaching a low at 2160 before settling at around 2175. The pair had been stalling around the resistance area near the 2300 mark and its 200 SMA on the daily chart, but has finally fallen through for the past couple of days.

Result: The Dollar dropped for the 2nd straight day, breaking through the 2200 mark with ease.

USD/JPY- The Dollar finally dropped against the Yen after showing so many signs of exhaustion during its long term uptrend. The pair found resistance at the 122.00 mark a couple of days ago and has since fallen to as low as 121.11. The pair has since moved back up slightly to around 121.36.

Result: The Dollar finally fell against the Yen as it dropped down to 121.11 before settling around 121.36.

Chart Analysis: What’s going to happen next?

EUR/USD

The Euro continued to move up to its 200 SMA on the 4hr chart like I said it would yesterday and now it looks like we may see a slight pause or retracement before this upward trend continues. 4hr stochastics are trending down and are in overbought territory which indicates a short term drop. However, daily stochastics are still trending up nicely which means this uptrend still could have some momentum. Currently the Euro is trading around 3520 and I would look for it to fall back down to 3500 before bouncing back up.

GBP/USD

The Cable ended up continuing its upward trend as it surged past 9950 today before settling back down near the 9900 mark. 4hr stochastics are still in overbought territory and are now trending down while daily stochastics are still trending up. Today’s price action indicates that we could see the pair fall tomorrow so I would look for the Cable to drop down to around 9875 or even 9850 before bouncing back up again.

USD/CHF

Woowee, the Swissy is dropping nicely! I said yesterday to watch for the pair to fall to 2200 and not only did it do that but it plummeted all the way down to as low as 2160. Hope you were able to grab some pips on this one. Daily stochastics are still trending down so I think this downtrend is far from over but because of today’s big drop, the 4hr stochastics have moved into oversold territory which leads me to believe that we’ll see a move back up in the short term. Currently the pair is trading around 2175 and I think we’ll see the Swissy move back up to 2200 before continuing to fall.

USD/JPY

Finally the Yen is dropping! The pair has seemed to finally found resistance at the 122.00 mark but it hasn’t fallen to 121.00 like I said it would yet. Both 4hr and daily stochastics are still trending down nicely with neither one being in oversold territory so I would expect this pair to make another drop tomorrow and actually hit 121.00. (Currently the Yen is trading at 121.36)