Recapping the Majors
EUR/USD– Just like before, the Euro was unable to sustain any momentum past the 3650 mark and headed back down to 3600 today. The pair has been moving between the 3600-3650 range for a while now as the market decides whether or not to push the Euro higher or push it back down past the 3600 level.
Result: After reaching the 3650 level again, the Euro fell back down to the 3600 mark.
GBP/USD- The Sterling started the day off strong as it rallied past the 2.0050 mark, but it ended up losing momentum and closing below 2.0000. The pair has been facing resistance at this level and it still looks as though the market is still deciding what to do with the Sterling.
Result: The Sterling once again was unable to close above 2.0000 and pretty much stayed put just under that level at around 1.9980.
USD/CHF– The Dollar rallied hard against the Swissy and broke out of the 2000-2100 range it had been trading in previously. The pair reached as high as 2163 before settling back down below 2150 at 2140.
Result: The Dollar rallied higher against the Swissy and broke out of its range, closing at around 2140.
USD/JPY– The Dollar rallied higher versus the Yen today after falling early on in the day. The pair fell to 119.00 before shooting up to as high as 119.84. The pair didn’t quite make it to 120.00 and ended up closing at around 119.80.
Result: The USD/JPY pretty rallied slightly higher and looks poised to reach the 120.00 mark.
Chart Analysis: What’s going to happen next?
The Euro ended up falling back down to 3600 after reaching the 3650 level. The 3650 level is proving to be a very strong resistance level. Daily stochastics are trending down nicely and 4hr stochastics are just now heading into oversold territory. Look for the Euro to break the 3600 level and move down to around 3550.
The Cable is still having trouble breaking the 2.0000 level and as a result, I am still bearish on this pair. 4hr stochastics are trending down but daily stochastics have crossed up. I still think we will see the Cable fall. Look for the Cable to fall to 1.9930 or even 1.9900 tomorrow.
The Swissy finally broke out of its 2000-2100 range as it broke past 2100 today. Daily stochastics are still trending up nicely and 4hr stochastics just entered overbought territory. I think since the pair broke out to the upside I think we’ll see more bullish movement. Look for the pair to head up to the 50 EMA on the daily chart which is currently around 2170.
The Yen edged up higher towards 120.00 but didn’t quite hit it. Both 4hr and daily stochastics are trending up but are heading into overbought territory. I think we’ll see the pair drift higher towards 120.00 but it should find resistance there and fall from that level.