Foreign Exchange Market Commentary

Daily Forex Technicals | Written by HY Markets | Jan 29 09 04:17 GMT |

EUR/USD closed lower on Wednesday due to profit taking as it consolidated some of this week's rally but remains above the 10-day moving average. The low-range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI are bullish signalling that sideways to higher prices are possible near-term. 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, fib support crossing is the next downside target. USD/JPY closed higher on Wednesday and above the 20-day moving average crossing. The mid-range close sets the stage for a steady opening on Thursday. Stochastics and the RSI are bullish signalling that sideways to higher prices are possible near-term. Today's close above the 20-day moving average crossing confirms that a short- term low has been posted. Closes below the 10-day moving average crossing would temper the near-term friendly outlook. GBP/USD closed higher on Wednesday as it extended this week's rally and closed above the 10-day moving average crossing. The low-range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI are turning bullish signalling that sideways to higher prices are possible near-term. Closes above the 20-day moving average crossing are needed to confirm that short-term low has been posted. If it renews last week's decline, monthly support crossing is the next downside target. USD/CHF closed higher due to short covering on Wednesday as it consolidated some of this week's decline but remains below the 10-day moving average crossing. The high-range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI remain 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 top has been posted. If it renews the rally off December's low, fib resistance crossing is the next upside target. HY Markets http://www.hymarkets.com