Foreign Exchange Market Commentary

Daily Forex Technicals | Written by HY Markets | Sep 22 08 04:15 GMT |

EUR/USD closed higher on Friday as it extended last week's rally. The high-range close sets the stage for a steady to higher opening on Monday. Stochastics and the RSI remain bullish signalling that sideways to higher prices are possible near- term. If it extends last week's rally, the reaction high crossing is the next upside target. Closes below the 10-day moving average crossing are needed to confirm that a short-term top has been posted. First resistance is Thursday's high crossing. Second resistance is the reaction high crossing. USD/JPY closed sharply higher due to profit taking on Friday and above the 10-day moving average crossing signalling that a short-term bottom has likely been posted. A short covering decline tempered early gains and the mid-range close sets the stage for a steady opening on Monday. Stochastics and the RSI are diverging and turning neutral to bullish signalling that a bottom might be in or is near. Closes above the 20-day moving average crossing are needed to confirm that a short-term bottom has been posted. If it extends the decline off August's high, May's low crossing is the next downside target. GBP/USD closed higher on Friday as it extended this week's rally above the 20-day moving average. The high-range close sets the stage for a steady to higher opening on Monday. Stochastics and the RSI remain bullish signalling that sideways to higher prices are possible near-term. If it extends last week's rally, the 50% retracement level of the July- September decline crossing is the next upside target. Closes below the 10-day moving average crossing would confirm that a short-term top has been posted. USD/CHF closed lower on Friday due to profit taking as it consolidated some of last week's decline but remains below the 20-day moving average crossing. The low-range close sets the stage for a steady to lower opening on Friday. Stochastics and the RSI remain bearish signalling that sideways to lower prices are possible near-term. If it extends last week's decline, the 50% retracement level of the July-September rally crossing is the next downside target. Closes above the 10-day moving average crossing would confirm that a short-term bottom has been posted. HY Markets http://www.hymarkets.com