Foreign Exchange Market Commentary

Daily Forex Technicals | Written by HY Markets | Feb 06 09 03:51 GMT |

EUR/USD closed lower on Thursday as it extended Wednesday's decline. The mid-range close sets the stage for a steady opening on Friday. Stochastics and the RSI are diverging and are turning neutral to bullish signalling that a low is 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 year's decline, fib support crossing is the next downside target. USD/JPY closed higher on Thursday as it extends this week's short covering rally. The mid-range close sets the stage for a steady opening on Friday. Stochastics and the RSI are neutral to bullish signalling that sideways to higher prices are possible near-term. Thursday's close above the 20-day moving average crossing has tempered the near-term bearish outlook. If it renews Monday's decline, January's low crossing is the next downside target. GBP/USD closed higher on Thursday as it extended Wednesday's breakout above the 20-day moving average crossing. The high-range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI remain bullish signalling that sideways to higher prices are possible near-term. If it extends this week's rally, the reaction high crossing is the next upside target. Closes below the 10-day moving average crossing are needed to confirm that short-term top has been posted. USD/CHF closed higher on Thursday as it extends this week's short covering rally. The mid-range close sets the stage for a steady opening on Friday. Stochastics and the RSI are neutral to bullish signalling that sideways to higher prices are possible near-term. Thursday's close above the 20-day moving average crossing has tempered the near-term bearish outlook. If it renews Monday's decline, January's low crossing is the next downside target. HY Markets http://www.hymarkets.com