Recapping the Majors
EUR/USD– The Euro rose again slightly against the Dollar today but found resistance at its 50 EMA on the daily chart at around 3430. The pair has risen for the past 3 days after it bounced off of the 3300 support area.
Result: The Euro edged up slightly against the Dollar, marking its 3rd straight day of gains but failing to break resistance at its 50 EMA on the daily chart at 3430.
GBP/USD- The Sterling still has not slowed down its rally against the Dollar as it once again pushed forward today. The pair started off at around 9830 but surged in the middle of the London session and is now nearing the 9900 mark as it is hovering at around 9880 at the moment.
Result: The Sterling rallied nicely once again against the Dollar as it is now nearing the 9900 mark.
USD/CHF- The Dollar continued to edge lower today against the Swissy as it dropped to 2400 for the 2nd straight day today. The pair had been on a huge rally until finally peaking at around 2470 and then finally falling down to 2400 both yesterday and today. 2400 may be a short term support area unless we see the pair break this level in the near future.
Result: The Dollar once again dropped back down against the Swissy to 2400 for the 2nd straight day.
USD/JPY- The Dollar finally took a break against the Yen as it fell slightly lower today to around 123.40. The pair has been in an upward trend since way back in March and has not really made any significant retracements. Today is the first break in the rally since it made another surge from June 7th-17th.
Result: The Dollar finally paused its rally against the Yen as it fell slightly lower to around 123.40.
Chart Analysis: What’s going to happen next?
The Euro rallied for the 3rd straight day today and it shows signs that it may continue to rally. Daily stochastics are trending up and 4hr stochastics looks like they are about to cross up. The only problem is the 50 EMA resistance on the daily chart. If the Euro can break it at around 3430 then I would watch for the Euro to at least climb to 3450 or even 3465 (the 200 SMA on the 4hr chart).
Well I was wrong about the Cable taking a plunge today as it continued to rally. Daily stochastics are still trending up nicely which indicates more longterm upward movement but 4hr stochastics have been in overbought territory for an extended period of time now. I would expect the pair to find short term resistance at the 9900 level and probably fall back down to around 9870 or 9850.
The Swissy fell back to 2400 like I said it would yesterday but it has yet to make a significant break of that level. This could be a short term support area since the pair can’t seem to move any lower. The 50 EMA on the 4hr chart is also right below the 2400 mark which gives it another extra support boost. Daily stochastics are trending down and are in oversold territory while the 4hr stochastics are flat at the moment. If the pair can break through its 50 EMA on the daily chart which is around 2385, then I would expect the pair to reach the 2350 mark.
The USD/JPY finally dropped a little today but it wasn’t anything big. Daily stochastics are in overbought territory while 4hr stochastics are trending down. Currently the pair is trading at around 123.40 and I would look for the pair to continue to drop down to 123.00.