Foreign Exchange Market Commentary

Daily Forex Technicals | Written by HY Markets | May 07 09 03:05 GMT |

EUR/USD closed higher on Wednesday and is poised to renew the rally off April's low. The high-range close sets the stage for a steady to higher opening on Thursday. 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 20-day moving average crossing would temper the near-term friendly outlook in the market. USD/JPY closed higher on Wednesday as it consolidates some of last week's decline. The high-range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI remain neutral to bearish signalling that sideways to lower prices are possible near-term. If it extends last week's decline, the reaction low crossing is the next downside target. Closes above the 10-day moving average crossing would confirm that a short-term top has been posted. GBP/USD closed higher on Wednesday as it extends the rebound off last week's low. The high-range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI remain bullish signalling that sideways to higher prices are possible near-term. If it extends the rally off April's low, January's high crossing is the next upside target. Closes below the 20-day moving average crossing would signal that a short-term top has been posted. USD/CHF closed higher on Wednesday as it consolidated some of Tuesday's losses. The mid-range close sets the stage for a steady opening on Thursday. Stochastics and the RSI are overbought but remain bullish signalling that sideways to higher prices are possible near-term. If it extends the rally, the reaction high crossing is the next upside target. HY Markets http://www.hymarkets.com