Foreign Exchange Market Commentary

Daily Forex Technicals | Written by HY Markets | Aug 05 09 07:02 GMT |

EUR/USD posted an inside day with a lower close on Tuesday as it consolidated some of Monday's rally but remains above June's high crossing. The low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI have turned bullish signalling that additional strength is possible near-term. If it extends Monday's rally, weekly resistance crossing is the next upside target. USD/JPY closed higher on Tuesday but remains below the 10-day moving average crossing. The low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are oversold and 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 extends the decline, the reaction low crossing is the next downside target. GBP/USD closed slightly lower due to profit taking on Tuesday as it consolidates some of Monday's rally but remains above June's high crossing. The low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are overbought diverging but are turning bullish signalling that sideways to higher prices are possible near-term. If it extends this summer's rally, the 75% retracement level of the 2008-2009-decline crossing is the next upside target. Closes below the 20-day moving average crossing at 90.30 would confirm that a short-term top has been posted. USD/CHF posted an inside day with a lower close on Tuesday as it consolidates some of Monday's rally. The mid-range close sets the stage for a steady opening on Wednesday. Stochastics and the RSI have turned bullish signalling that sideways to higher prices are possible near-term. Closes above trading range resistance crossing would open the door for a possible test of last December's high crossing. Closes below the 20-day moving average crossing would confirm that a double top with June's high has been posted. HY Markets http://www.hymarkets.com