Foreign Exchange Market Commentary

Daily Forex Technicals | Written by HY Markets | Jan 21 09 09:21 GMT |

EUR/USD closed lower on Monday and the low-range close sets the stage for a steady to lower opening on Tuesday. 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 last week's decline, fib support crossing is the next downside target.

USD/JPY closed lower on Monday as it extends some of last week's decline. The low-range close sets the stage for a steady to lower opening on Tuesday. 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 sharply lower on Monday and remains below the 10-day moving average crossing. The low-range close sets the stage for a steady to lower opening on Tuesday. 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 sharply higher on Monday and the high-range close sets the stage for a steady to higher opening on Tuesday. 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.

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