Foreign Exchange Market Commentary

Daily Forex Technicals | Written by HY Markets | Jan 19 09 03:40 GMT |

EUR/USD closed higher on Friday due to short covering as it consolidated some of this week's decline. The high-range close sets the stage for a steady to higher opening on Monday. Stochastics and the RSI are oversold but are turning neutral hinting 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 extends this week's decline, fib support crossing is the next downside target. USD/JPY closed higher on Friday as it consolidates some of last week's decline. The high-range close sets the stage for a steady to higher opening on Monday. Stochastics and the RSI are overbought and are turning neutral hinting that a short-term bottom might be in or is near. Closes above the 10-day moving average crossing would confirm that a short-term bottom has been posted. If it extends last week's decline, December's low crossing is the next downside target. GBP/USD closed higher on Friday due to short covering but remains below the 10-day moving average crossing. The low-range close sets the stage for a steady to lower opening on Monday. Stochastics and the RSI remain neutral to bearish signalling that sideways to lower prices are possible near-term. If it renews last week's decline, December's low crossing is the next downside target. Closes above the 10-day moving average crossing are needed to confirm that short-term low has been posted. USD/CHF closed lower on Friday due to short covering. The mid-range close sets the stage for a steady opening on Monday. Stochastics and the RSI are oversold but remain neutral to bullish signalling that sideways to higher prices are possible near-term. If it extends this month's rally, broken support crossing is the next upside target. Closes below the 20-day moving average crossing would temper the near-term bullish outlook in the market. HY Markets http://www.hymarkets.com