Foreign Exchange Market Commentary

Daily Forex Technicals | Written by HY Markets | Mar 04 09 05:40 GMT |

EUR/USD closed higher on Tuesday due to short covering as it consolidates some of Monday's decline. The mid-range close sets the stage for a steady opening on Wednesday. Stochastics and the RSI are bearish signalling that sideways to lower prices are possible near-term. If it renews this year's decline, November's low crossing is the next downside target. Closes above last Monday's high crossing are needed to confirm that a short-term low has been posted. USD/JPY closed higher on Tuesday ending a two-day short covering decline. March remains above the 50% retracement level of the August-January decline crossing and the high-range close sets the stage for a steady to higher opening on Wednesday. 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 year's rally, the 62% retracement level of the August-January decline crossing is the next upside target. Closes below the 20-day moving average crossing are needed to confirm that a short-term high has been posted. GBP/USD posted an inside day with a higher close on Tuesday as it consolidated some of Monday's decline. The mid-range close sets the stage for a steady opening on Wednesday. Stochastics and the RSI are bearish signalling that sideways to lower prices are possible near-term. If it extends this week's decline, January's low crossing is the next downside target. Closes above the reaction high crossing are needed to confirm that a bottom and trend change has taken place. USD/CHF closed lower due to short covering on Tuesday as it consolidated some of Monday's rally but remains above the 10-day moving average crossing. The high-range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are bullish signalling that sideways to higher prices are possible near-term. Closes above February's high crossing are needed to renew this year's rally. Closes below the 20-day moving average crossing would temper the near-term bullish outlook. HY Markets http://www.hymarkets.com