Foreign Exchange Market Commentary

Daily Forex Technicals | Written by HY Markets | Jun 03 09 04:11 GMT |

EUR/USD closed higher on Tuesday as it extended last Monday's rally above the 75% retracement level of the December- March decline crossing. Profit taking tempered early gains and the mid-range close sets the stage for a steady opening on Wednesday. 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 spring's rally, the 87% retracement level of the December-March decline crossing is the next upside target. USD/JPY closed higher on Tuesday as it reversed Monday's loss. Profit taking tempered early gains and the mid-range close sets the stage for a steady opening on Wednesday. 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 spring's rally, the 87% retracement level of the December-March decline crossing is the next upside target. GBP/USD closed sharply higher on Tuesday as it extends this spring's rally. The high-range close sets the stage for a steady to higher opening on Wednesday. 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 higher on Tuesday as it reversed Monday's loss. Profit taking tempered early gains and the mid-range close sets the stage for a steady opening on Wednesday. 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 spring's rally, the 87% retracement level of the December-March decline crossing is the next upside target. HY Markets http://www.hymarkets.com