Foreign Exchange Market Commentary

Daily Forex Technicals | Written by HY Markets | Jul 25 08 10:08 GMT |

EUR/USD gapped down and closed lower on Wednesday hinting that a short-term top has likely been posted. The low-range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI are neutral hinting that sideways to lower prices are possible near-term. Closes below the 20-day moving average crossing are needed to confirm that a short-term top has been posted. Closes above last week's high crossing are needed to renew this month's rally. USD/JPY closed higher on Wednesday as it consolidates above the reaction high crossing. The high-range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are turning neutral hinting that sideways to higher prices are possible near-term. If it extends today's rally, last week's high crossing is the next upside target. Multiple closes below the 20-day moving average crossing are needed to confirm that a short-term top has been posted. GBP/USD closed higher on Wednesday as it consolidates above the reaction high crossing. The high-range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are turning neutral hinting that sideways to higher prices are possible near-term. If it extends the recent rally, last week's high crossing is the next upside target. Closes below the 20-day moving average crossing are needed to confirm that a short-term top has been posted. USD/CHF closed higher on Wednesday as it consolidates above the reaction high crossing. The high-range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are turning neutral hinting that sideways to higher prices are possible near-term. Closes below the 20-day moving average crossing are needed to confirm that a short-term top has been posted. HY Markets http://www.hymarkets.com