Foreign Exchange Market Commentary

Daily Forex Technicals | Written by HY Markets | Jun 18 09 04:32 GMT |

EUR/USD closed higher due to short covering on Wednesday as it consolidated some of Monday's decline. The high-range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI remain bearish signalling that sideways to lower prices is possible near-term. If it extends this week's decline, the reaction low crossing is the next downside target. Closes above the 20-day moving average crossing are needed to confirm that a short-term low has been posted. USD/JPY closed sharply higher on Wednesday and the high-range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are turning bullish hinting that a low might be in or is near. Closes above the 20-day moving average crossing are needed to confirm that a short-term low has been posted. If it renews last week's decline, the reaction low crossing is the next downside target. GBP/USD closed lower due to profit taking on Wednesday as it consolidates above the 10-day moving average crossing. The high-range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are turning bearish hinting that sideways to lower prices are possible near-term. Closes below the reaction low crossing are needed to confirm that a short-term top has been posted. If it renews the rally off April's low, the 62% retracement level of the 2008-2009 decline crossing is the next upside target. USD/CHF closed higher due to short covering on Wednesday as it consolidated some of Monday's decline. The high-range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI remain bearish signalling that sideways to lower prices are possible near-term. Closes below the reaction low crossing would confirm that a short-term top has been posted. Closes above the reaction high crossing would confirm that a short-term low has been posted. HY Markets http://www.hymarkets.com