Foreign Exchange Market Commentary

Daily Forex Technicals | Written by HY Markets | Jun 01 09 07:57 GMT |

EUR/USD closed sharply higher on Friday and above the 75% retracement level of the 2008-2009-decline crossing. The high-range close sets the stage for a steady to higher opening on Monday. Stochastics and the RSI are overbought but are turning neutral again signalling that sideways to higher prices is possible near-term. If it extends this month's rally, the reaction 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/JPY closed sharply higher on Friday and above the 10-day moving average crossing. The high- range close sets the stage for a steady to higher opening on Monday. Despite today's rally, stochastics and the RSI remain bearish signalling that sideways to lower prices are possible near-term. If it extends Thursday's decline, the reaction low crossing is the next downside target. Closes above the reaction high crossing would confirm that a short- term low has been posted. GBP/USD closed higher on Friday and above the 38% retracement level of the 2008-2009-decline crossing as it extends this spring's rally. The high-range close sets the stage for a steady to higher opening on Monday. Stochastics and the RSI are overbought but remain neutral to bullish signalling that sideways to higher prices are possible near- term. If it extends the rally off April's low, the 50% retracement level of the 2008-2009 decline 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 on Friday and above the 75% retracement level of last fall's rally crossing. The high-range close sets the stage for a steady to higher opening on Monday. Stochastics and the RSI are overbought but remain neutral to bullish signalling that sideways to higher prices are possible near-term. If it extends the rally off April's low, the 87% retracement level of last fall's rally crossing is the next upside target. Closes below the 20-day moving average crossing would confirm that a short-term top has been posted. HY Markets http://www.hymarkets.com