Recapping the Majors
EUR/USD– The Euro continued to fall today as it dropped past the 3500 mark and is currently at 3480. The Euro has dropped for the 3rd straight day against the Dollar and has been on a steady decline since it was at an extreme high of 3650 on April 29th.
Result: The Euro continued to fall against the Dollar and has now broken past 3500. This is the 3rd straight day the Euro has fallen against the Dollar.
GBP/USD- Well it was a case of "buy the rumor, sell the news" as the Sterling dropped hard against the Dollar amidst the BOE’s interest rate increase. The pair began falling early in the London session and continued to fall throughout the US session.
Result: The Sterling fell 150 pips against the Dollar as the pair dropped from 9950 to 9800 today.
USD/CHF- The Dollar once again rallied higher against the Swissy as it pierced through the 2200 level. The pair got as high as 2222 before falling back down to 2200. This marks the 3rd straight day of gains made by the Dollar against the Swissy but we may see the pair face resistance at the 2200 mark.
Result: The Dollar rallied once again and moved up to 2200 today.
USD/JPY- The USD/JPY rallied early on and made it up to 120.50. However, later in the day the pair took a steep turn and fell right back to 120.00 where it has been settling at for the past 3 days now. The pair’s price action shows that there is still alot of indecision in the market.
Result: The Dollar rallied early but ended up falling right back to 120.00 where it has been settling at for the past 3 days now.
Chart Analysis: What’s going to happen next?
The Euro finally hit the 3500 level like I’ve been saying it would this entire week. In fact the Euro even broke below it. Both 4hr and daily stochastics are trending down but daily stochastics are in oversold territory. I still think the Euro will continue to drop a little more before a retracement. Look for the Euro to fall down to its 50 EMA on the daily chart which is currently at 3434.
Oh my goodness! The day I put out that short Cable trade idea I got stopped out, and what does the market decide to do after that? Yep…it goes right down to my target of 9800. You gotta love the Forex! I’m not bitter though. I know I’ll have more opportunities 🙂 Both the 4hr and daily stochastics are still trending down and neither have reached oversold territory yet. However the pair has found support at the 50 EMA on the daily chart. I think we may see the pair pierce below 9800 and may even travel down to 9750 but we may see a retracement soon after that.
The Swissy finally made it to 2200 and actually spiked above it briefly but just as I thought, the pair found resistance at the 2200 mark. Both 4hr and daily stochastics are trending up with daily stochastics in overbought territory now. I think the pair may drift slightly higher above 2200 (possibly near 2250) but I have a feeling we’ll see some retracement soon after that.
The USD/JPY started rallying early today but ended up right back at 120.00 for the 3rd straight day. I am still bearish on this pair and now both 4hr and daily stochastics are trending down which could indicate a drop in the near future. I’m going to say what I’ve been saying for the past week and that is to look for the Yen to fall down to 119.00 in the near future.