Foreign Exchange Market Commentary

Daily Forex Technicals | Written by HY Markets | Feb 11 09 03:43 GMT |

EUR/USD closed higher on Monday due to short covering as it consolidated some of last week's decline. The mid-range close sets the stage for a steady opening on Tuesday. Stochastics and the RSI are turning 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 lower on Monday as it extends Thursday's decline below the reaction low crossing. The low-range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are bearish signalling that sideways to lower prices are possible near-term. If it extends this Monday's decline, January's low crossing is the next downside target. Multiple closes above Monday's high crossing are needed to confirm that a short-term low has been posted. GBP/USD closed higher on Monday as it extends last week's rally. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI remain bullish signalling that sideways to higher prices are possible near-term. If it extends this rally, January's high crossing is the next upside target. Closes below the 20- day moving average crossing are needed to confirm that short-term top has been posted. USD/CHF closed higher on Monday as it extends last Friday's rally. The mid-range close sets the stage for a steady opening on Tuesday. Stochastics and the RSI are bullish signalling that sideways to higher prices are possible near-term. If it extends today's rally, the reaction high crossing is the next upside target. Closes below the 20-day moving average crossing would temper the near-term friendly outlook. HY Markets http://www.hymarkets.com