Foreign Exchange Market Commentary

Daily Forex Technicals | Written by HY Markets | Jun 19 09 03:43 GMT |

EUR/USD closed lower on Thursday ending a two-day short covering bounce off Tuesday's low. The low-range close sets the stage for a steady to lower opening on Friday. Stochastics and the RSI remain neutral to bearish signalling that sideways to lower prices is possible near-term. If it renews 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 posted an inside day with a lower close on Thursday as it consolidated some of this week's rally as the dollar extended its gain. The low-range close sets the stage for a steady to lower opening on Friday. Despite today's setback, 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 10-day moving average crossing would temper the near-term friendly outlook in the market. GBP/USD closed lower due to profit taking on Thursday as it consolidates above the 20-day moving average crossing. The mid-range close sets the stage for a steady opening on Friday. Stochastics and the RSI are neutral to 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 posted an inside day with a lower close on Thursday ending a two-day short covering bounce as the dollar extended its gain. The low-range close sets the stage for a steady to lower opening on Friday. Stochastics and the RSI remain neutral to bearish signalling 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. Closes above the reaction high crossing would confirm that a short-term low has been posted. HY Markets http://www.hymarkets.com