Chart Analysis: What’s going to happen next?
Woowee the Euro has been on fire lately hasn’t it? We’ve seen the EUR/USD rise about 200 pips since last Tuesday and it looks like it may have finally found some resistance around the 3800 level. 4hr stochastics have crossed down and are in overbought territory while daily stochastics are in overbought territory but still trending up. At this point, since we’ve seen 4 straight trading sessions of Euro gains, I am expecting the pair to drop soon. I would look to short around the 3800 level if you’re aggressive, and if you’re conservative, you might want to wait and see if the pair rises to 3850 first.
As with the Euro, the GBP has been rallying against the Dollar nicely over the past 4 trading sessions. Now it seems to have found resistance around the 2.0300 mark as it has broken through that level twice now but hasn’t been able to close above that level. Both 4hr and daily stochastics are trending down and I would expect this pair to drop sometime tomorrow. Aggressive traders might want to short now (around 2.0270) and conservatives might want to wait and see another test of the 2.0300 level. Look to set your targets around 2.0200, which is where the 50 EMA is headed on the 4hr chart.
The Swissy has also been killin the Dollar lately and has brought it all the way down to 1850. The pair has stalled around that area, but it may continue down to 1800 before bouncing back up. 4hr stochastics are in oversold territory and have been for a while now, but daily stochastics are still trending down even though they are in oversold territory as well. The pair may bounce up from 1850, but it could also take a dive down to 1800 before bouncing up.
The Dollar is also falling against the Yen but in a choppy motion. Today the Dollar happened to make a small gain against the Yen as it ended up around 113.65. I’m getting mixed indications at the moment. 4hr stochastics are trending up while daily stochastics are trending down. Currently the pair is trading around 113.70 and I would look for the pair to head to 114.00 in the short term. From there, who knows what will happen?!