Foreign Exchange Market Commentary

Daily Forex Technicals | Written by HY Markets | Jun 22 09 04:33 GMT |

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