Recapping the Majors
EUR/USD– The Euro eased off slightly today as it bounced down from the 3800 mark. The pair has been at a standstill after it breached 3800 last Thursday.
Result: The Euro fell slightly as it bounced down from the 3800 mark and is currently around 3775.
GBP/USD- The Sterling rallied for the 2nd straight day as it soared to 2.0400. The pair feigned weakness at the 2.0350 mark after it fell from that level last Wednesday but has since rallied back strong and made another new 15 year high today.
Result: The Sterling rallied strong for the 2nd straight day as it made a new 15 year high, reaching the 2.0400 mark.
USD/CHF- The Swissy pretty much did nothing today which has been the case for the past few days for the pair. The pair has been dropping down to 2000 but then proceeds to bounce back up which makes that 2000 mark look like a pretty good support line for the time being.
Result: The Swissy once again dropped down to 2000 but bounced back up as it was unable to break that support level now. The pair has been testing that level since July 10th but has been unable to break it.
USD/JPY- The Dollar stayed quiet against the Yen today as it hovered around its 50 EMA support level on the daily chart. The pair originally bounced off of that support level back on July 10th and rose back up to 122.50 before falling back down to the 50 EMA support at around 121.90.
Result: The Dollar stayed still today as it hovered around the 50 EMA support on the daily chart at around 121.90.
Chart Analysis: What’s going to happen next?
The Euro hasn’t been dropping like I thought it would and actually rose up to 3800 but now looks like it has finally found resistance at 3800. Daily stochastics are in overbought territory and 4hr stochastics are trending down which means we could see some short term bearish movement. Currently the pair is trading at around 3775 and I would watch for it to continue falling to 3750.
The Sterling just won’t say die as it once again made a new 15 year high at 2.0400. Daily stochastics are in overbought territory and 4hr stochastics are trending down. Like the Euro, I would watch for the Sterling to drop tomorrow. Currently the pair is trading at around 2.0360 and I would watch for it to head down near the 2.0300 mark.
The Swissy has been treading on the 2000 mark for several days now and it seems as though its proving to be a pretty stuff support level. Daily stochastics are in oversold territory and 4hr stochastics are trending up which means I would expect the pair to move up tomorrow. Currently the pair is at 2027 and I would watch for it to continue up to the 2050 level.
The Yen has been moving crazy the past few days as it’s been moving up and down. However, the one constant is that the 50 EMA on the daily chart has been a good support area. Now, we’re at that support level again and 4hr stochastics are trending up which indicates that we could see some upward movement tomorrow. Since my theme for the tomorrow seems to be a bullish dollar day, it also fits!