Recapping the Majors
EUR/USD– The Euro continued the remnants of its fall today as it edged lower, breaking just below 3500. The pair moved up slightly early on in the day to 3543 but then proceeded to drop below 3500. This is the 2nd day the Euro has lost to the Dollar after rising to 3600.
Result: The Euro continued to fall slightly as it just broke below 3500 today.
GBP/USD- The Cable finally broke through support at its 50 EMA on the daily chart as it fell below 9750 today. The pair tested the 9800 level early on but the bearish momentum took over in the later part of the day as it pushed the pair to as low as 9731. This is the 2nd day the Sterling has lost to the Dollar and this break of support could indicate a further drop to 9700.
Result: The Sterling fell for the 2nd straight day against the Dollar as it broke below 9750.
USD/CHF- The Dollar continued its strong run against the Swissy as it broke through 2250 as well as its 100 SMA on the daily chart. Early on, the pair fell to 2200 but found support as the Dollar bulls rallied strong to bring the pair up closer to 2300.
Result: The Dollar made another big run against the Swissy as it made a clean break of the 2250 level and neared the 2300 mark.
USD/JPY- The Dollar continued with its rally against the Yen today as it was able to break the 121.00 mark. The pair has been rallying slowly but surely ever since it bottomed out at 115.14 on March 4th. The pair consolidated for a few days around 120.00 but over the last 2 days, the pair has rallied strong and continued the long term uptrend.
Result: The Dollar pushed forward against the Yen as it rallied past the 121.00 mark.
Chart Analysis: What’s going to happen next?
Well the Euro did end up dropping again today like I thought it would and its now trading just below the 3500 mark. Both 4hr and daily stochastics are now trending down but the 4hr stochastics are in oversold territory which means we might see it bottom out temporarily in the short term. Look for the Euro to fall down to 3450 in the short term as that is where the 50 EMA is on the daily chart. Be careful around that level as we may see a bounce off of that support area.
The Cable fell to 9750 like I said it would yesterday and the pair may be headed to 9700 since it broke support at the 50 EMA on the daily chart. Both 4hr and daily stochastics are trending down but they are also both in oversold territory. Currently the pair is trading around 9740 and I think we’ll see it make a push towards the 9700 level, but be cautious and take profits when you can as we may see a bounce back up soon.
Well not only the Swissy go to 2250 like I thought, but the pair actually made a clean break of that level and settled around 2270. The pair is facing some resistance at the 100 SMA on the daily chart and both 4hr and daily stochastics are in overbought territory. However, both stochastics are still trending up. I’d be very careful at this point, but I think we could see the Swissy reach 2300, but it will probably face resistance there and bounce down from there.
Just like the Swissy, the Yen surpassed my expectations as it not only hit 121.00, but it also made a clean break and ended up closing at 121.30. Both 4hr and daily stochastics are in overbought territory like the Swissy but the daily stochastics are still trending up. I think there will be enough juice for the pair to reach 121.50 but you should be careful going long anywhere past that point as we’re seeing overbought indications on both the 4hr and daily stochastics.