Foreign Exchange Market Commentary

Daily Forex Technicals | Written by HY Markets | Feb 04 09 03:41 GMT |

EUR/USD closed higher due to short covering on Tuesday as it consolidated some of last week's decline. The high-range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are bearish signalling that sideways to lower prices are possible near-term. If it extends this year's decline, fib 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 closed slightly lower on Tuesday as it extended last week's decline. The mid-range close sets the stage for a steady opening on Wednesday. Stochastics and the RSI are neutral to bearish signalling that sideways to lower prices are possible near-term. If it extends this year's decline, broken resistance 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 higher due to short covering on Tuesday as it consolidated some of last week's decline. The high-range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are bearish signalling that sideways to lower prices are possible near-term. If it extends this year's decline, fib 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 lower on Tuesday as it extended last week's decline. The mid-range close sets the stage for a steady opening on Wednesday. Stochastics and the RSI are neutral to bearish signalling that sideways to lower prices are possible near-term. If it extends this year's decline, broken resistance 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. HY Markets http://www.hymarkets.com