Foreign Exchange Market Commentary

Daily Forex Technicals | Written by HY Markets | May 19 09 03:32 GMT |

EUR/USD closed higher due to short covering on Monday and above the 10-day moving average crossing. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are turning bearish signalling that additional profit taking is possible near-term. Closes below the 20-day moving average crossing would temper the near-term friendly outlook in the market. If it renews this month's rally, March's high crossing is the next upside target. USD/JPY posted a key reversal down due to profit taking on Monday as it consolidated some of last week's rally. The low-range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are overbought and are turning neutral hinting that a short-term top might be in or is near. Closes below the 20-day moving average crossing would confirm that a short-term top has been posted. If it extends this month's rally, March's high crossing is the next upside target. GBP/USD closed higher on Monday and the high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If it extends the rally off April's low, December's high crossing is the next upside target. Closes below the 20-day moving average crossing would confirm that a short-term top has been posted. USD/CHF closed sharply higher due to profit taking on Monday and above the 10-day moving average crossing signalling that a short-term bottom has likely been posted. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are overbought and are turning bullish signalling that sideways to higher prices are possible near-term. Closes above the 20-day moving average crossing would confirm that a short-term bottom has been posted. HY Markets http://www.hymarkets.com