Recapping the Majors
EUR/USD– After several days of stalling, the Euro finally climbed back up to hit the 3500 mark. The Euro had been previously hanging around 3400 where it had found support and slowly hovered around 3450 before making a nice rally to 3500 today.
Result: The Euro finally rallied higher against the Dollar, taking it back up to the 3500 level.
GBP/USD- The Sterling rallied strong against the Dollar today as it rallied over 9900 before settling back down. Today marks the 3rd straight day of gains the Sterling has made against the Dollar after bottoming out at 9750 on May 29th.
Result: The Sterling rallied strong against the Dollar as the Cable rose back up to 9900.
USD/CHF- After testing the 200 SMA resistance on the daily chart again, the Swissy finally made its push as it brought the Dollar down to to as low as 2215 today before settling back up to around 2230. The pair had been toying with resistance around the 2300 mark for several days and now the Dollar has finally caved in.
Result: The Dollar finally dropped after hitting resistance around the 2300 level and fell to almost 2200 against the Swissy today.
USD/JPY- The Dollar continued to edge back up to 122.00 but has once again found slight resistance as the pair has since cooled back down to around 121.80. The USD/JPY has been on a long term rally and continues to show signs of exhaustion, but the pair just keeps moving higher and higher.
Result: The Dollar fell slightly to 121.80 today after hitting resistance at the 122.00 mark.
Chart Analysis: What’s going to happen next?
Well the Euro finally moved up to 3500 like I have been saying it would for the past several days now. Both 4hr and daily stochastics are trending up and I think we will see the pair continue to rise in the short term. Currently the pair is trading around 3484 and I would watch for it to make another run to 3500 and possibly 3430, which is where the 200 SMA is on the 4hr chart.
Well I was totally wrong about thinking the Cable was going to drop to 9700 and the pair actually shot up to 9900. Eh..it happens! The pair did have some nice bullish momentum today which has caused the 4hr stochastics to be in overbought territory for an extended period of time now. Daily stochastics have crossed back up after it was trending down so we could see more bullish movements in the medium term. However, with the strong upward momentum today, I would watch for the Cable to cool off a bit and head back down to around 9850 before making another push up.
Finally the Swissy has dropped! The pair actually rose back up to test resistance again at the 200 SMA on the daily chart but then it dropped hard and got to as low as 2215 before moving back up to around 2240. Both 4hr and daily stochastics are still trending down so I would watch for the Swissy to continue to fall and actually hit 2200 in the near future.
The Yen always likes to tease me. Both 4hr and daily stochastics are still showing overbought indications but the pair continues to edge higher and seems to have found resistance at the 122.00 level. This looks like a very good place to sell as I think we should start seeing the pair cool off from here. My thoughts are still the same and I think the pair will still drop to 121.00 sometime real soon.