Foreign Exchange Market Commentary

Daily Forex Technicals | Written by HY Markets | Oct 22 08 03:17 GMT |

EUR/USD closed lower on Tuesday as it extended this week's decline. The low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are oversold, diverging but are neutral to bearish signalling that additional weakness is possible near-term. If it extends this month's decline, weekly support crossing is the next downside target. Closes above the 20-day moving average crossing are needed to confirm that a short-term low has been posted. USD/JPY gapped down and closed lower on Tuesday. The low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are oversold, diverging but are neutral to bearish signalling that additional weakness is possible near-term. If it extends this month's decline, weekly support crossing is the next downside target. Closes above the 20-day moving average crossing are needed to confirm that a short-term low has been posted. GBP/USD closed lower on Tuesday as it extended this week's decline. The low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are oversold, diverging but are neutral to bearish signalling that additional weakness is possible near-term. If it extends this month's decline, weekly support crossing is the next downside target. Closes above the 20-day moving average crossing are needed to confirm that a short-term low has been posted. USD/CHF closed slightly higher on Tuesday. The mid-range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are bullish hinting that a short-term low might be in or is near. Closes above the 10-day moving average crossing are needed to confirm that a short-term low has been posted. If it renews this month's decline, the 62% retracement level of the 2001-2007-rally crossing is the next downside target. HY Markets http://www.hymarkets.com