Recapping the Majors
EUR/USD– After a strong week of rallies last week the Euro finally took a breather today as it dropped back down to 3650 today. The day started out at 3665 and only moved slightly higher to 3684 before finally settling down to around 3650. So you can see it wasn’t really an exciting day for the Euro.
Result: The Euro lost a little steam today and drifted back down to around 3650.
GBP/USD– The Cable dropped slightly today as it wore of its existing bullish momentum from last week. The pair opened up at 2.0140 and rallied to as high as 2.0190 before dropping and closing around 2.0125.
Result: The Sterling finally lost steam and dropped down from 2.0140 to 2.0125 today.
USD/CHF– The Dollar rallied slightly against the Swissy as it found support at 2000 and moved up to 2030 today. The pair ended last week at around 2000 and it quickly found support as it surged to as high as 2046 before finally settling at 2030.
Result: The Dollar rallied slightly as it moved from 2000 to 2030 against the Swissy today.
USD/JPY– The Dollar stayed quiet today compared to the past couple of weeks of volatile movement. The pair opened up at 116.35 and rallied above 116.50 before heading down to just above 116.00 at around 116.05.
Result: The Dollar dropped slightly lower against the Yen today as it ended up dropping about 30 pips from 116.35 to 116.05.
Chart Analysis: What’s going to happen next?
The Euro slowed down finally and dropped slightly today. 4hr stochastics are trending down while daily stochastics are in overbought territory which indicates some bearish movement in the near future. The pair has been rallying since August 16th so it might be about time for the pair to drop. Look for the pair to fall to its 100 SMA on the 4hr chart at around 3600.
Like the Euro, the Sterling also cooled down today and dropped slightly. 4hr stochastics are trending down while daily stochastics are heading into overbought territory. Currently the Cable is trading at around 2.0120 and I would watch for it to continue drifting down to its 100 SMA on the 4hr chart at around 2.0068.
The Swissy bounced slightly as it hit support at 2000 and made its way to 2030. 4hr stochastics are trending up which indicates more upward movement in the near term while daily stochastics are in oversold territory which also confirms my bullish sentiment. Currently the pair is trading around 2026 and I would watch for it to head up to its 50 EMA on the 4hr chart at around 2050.
Unlike the other pairs the Yen is giving some conflicting indications right now. The pair is trading around 116.00. 4hr stochastics are trending down while daily stochastics are trending up. The pair may fall to 115.50 before making another move back up but I’m not too confident about that theory haha!