Foreign Exchange Market Commentary

Daily Forex Technicals | Written by HY Markets | Sep 16 08 05:07 GMT |

EUR/USD closed slightly lower on Monday as it consolidated last Friday's short covering rally. Profit taking tempered early gains and the low-range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are diverging and are turning bullish hinting that a short-term low might be in or is near. Closes above the 20-day moving average crossing are needed to confirm that a short-term top has been posted. If it renews this summer's decline, the 87% retracement level of the aforementioned rally crossing is the next downside target. USD/JPY closed sharply lower on Monday as it extends the decline off August's high. The mid-range close sets the stage for a steady opening on Tuesday. Stochastics and the RSI are neutral to bearish signaling that sideways to lower prices are possible near-term. If it extends the decline off August's high, July's low crossing is the next downside target. Closes above the 20-day moving average crossing are needed to confirm that a short-term bottom has been posted. GBP/USD closed slightly lower on Monday as it consolidated some of last Friday's rally but remains above the 10-day moving average crossing. Profit taking tempered early gains and the mid-range close sets the stage for a steady opening on Tuesday. Stochastics and the RSI are oversold and are turning bullish signalling that a low might be in or is near. Closes above the 20-day moving average crossing are needed to confirm that a short-term low has been posted. If it renews this month's decline, monthly support crossing is the next downside target. USD/CHF gapped down and closed below the 10-day moving average crossing on Monday signalling that a short-term high has likely been posted. The mid-range close sets the stage for a steady opening on Tuesday. Stochastics and the RSI are oversold, diverging and are turning neutral to bearish signalling 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 high has been posted. If it renews this summer's rally the 87% retracement level of the aforementioned decline crossing is the next upside target. HY Markets http://www.hymarkets.com