Foreign Exchange Market Commentary

Daily Forex Technicals | Written by HY Markets | Feb 16 09 03:52 GMT |

EUR/USD closed higher on Friday as it consolidated some of Thursday's decline. The mid-range close sets the stage for a steady opening on Monday. Stochastics and the RSI are turning bearish signalling that sideways to lower prices are possible near-term. If it renews this year's decline, fib support crossing is the next downside target. Multiple closes above the 20-day moving average crossing are needed to confirm that a short-term low has been posted. USD/JPY closed higher on Friday as it consolidates above the 75% retracement level of the December-January rally crossing. The mid-range close sets the stage for a steady opening on Monday. Stochastics and the RSI are neutral to 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 year's decline, the 87% retracement level crossing is the next downside target. GBP/USD closed higher on Friday due to profit taking as it consolidated some of Thursday's low but remains below the 20-day moving average crossing. The mid-range close sets the stage for a steady opening on Monday. Stochastics and the RSI are bearish signalling that sideways to lower prices are possible near-term. If it extends this week's decline, the reaction 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 posted an inside day with a lower close on Friday as it consolidated some of the week's rally. The low-range close sets the stage for a steady to lower opening on Monday. Stochastics and the RSI are bullish signalling that sideways to higher prices are possible near-term. Closes above last Tuesday's high crossing are needed to confirm that a short- term low has been posted. If it renews last week's decline, January's low crossing is the next downside target. HY Markets http://www.hymarkets.com