Foreign Exchange Market Commentary

Daily Forex Technicals | Written by HY Markets | Aug 19 08 08:09 GMT |

EUR/USD closed higher on Monday due to short covering as it consolidated some of this month's decline but remains below the 75% retracement level of this year's rally crossing. The mid-range close sets the stage for a steady opening on Monday. Stochastics and the RSI are oversold but are neutral to bearish hinting that sideways to lower prices are possible near-term. If it extends this month's decline, the 87% retracement level crossing is the next downside target. USD/JPY closed slightly lower on Monday as it extends this month's decline. The low-range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are oversold but remain neutral to bearish hinting that sideways to lower prices are possible near-term. If it extends this summer's decline, February's low crossing is the next downside target. Closes above the 10-day moving average crossing are needed to confirm that a short- term low has been posted. GBP/USD closed slightly lower on Monday as it extends this month's decline. The low-range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are oversold but remain neutral to bearish hinting that sideways to lower prices are possible near-term. If it extends this summer's decline, February's low crossing is the next downside target. Closes above the 10-day moving average crossing are needed to confirm that a short- term low has been posted. USD/CHF closed higher on Monday as it consolidates some of this month's decline. A late-day sell off tempered early gains and the low-range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are oversold but remain neutral to bearish hinting that sideways to lower prices are possible near-term. If it extends this month's decline, weekly support crossing is the next downside target. Closes above the 10-day moving average crossing would confirm that a short-term low has been posted. HY Markets http://www.hymarkets.com