Foreign Exchange Market Commentary

Daily Forex Technicals | Written by HY Markets | Sep 21 09 04:57 GMT |

EUR/USD closed lower due to profit taking on Friday as it consolidates some of this month's rally. The high-range close sets the stage for a steady to higher opening on Monday. 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 August's low, the 87% retracement level of the 2008-decline crossing is the next upside target. Closes below the 20-day moving average crossing are needed to confirm that an important top has been posted. USD/JPY closed lower on Friday as it consolidates below the 75% retracement level of the 2008-2009-decline crossing. The mid-range close sets the stage for a steady to lower opening on Monday. Stochastics and the RSI are turning bearish hinting that a short-term top might be in or is near. Closes below the 20-day moving average crossing are needed to confirm that a short-term top has been posted. If it extends the rally off August's low, the 87% retracement level of the 2008-2009-decline crossing is the next upside target. GBP/USD closed below the 20-day moving average crossing on Friday confirming that a short-term top has been posted. The low-range close sets the stage for a steady to lower opening on Monday. Stochastics and the RSI are bearish signalling that sideways to lower prices are possible near-term. If it extends this week's decline, the reaction low crossing is the next downside target. Closes above Thursday's high crossing would temper the near-term bearish outlook in the market. USD/CHF closed slightly lower due to light profit taking on Friday but remains above the 87% retracement level of the 2008-2009-decline crossing. The high-range close sets the stage for a steady to higher opening on Monday. Stochastics and the RSI are overbought but remain neutral to bullish signalling that sideways to higher prices are possible near-term. If it extends this summer's rally, the 2008 high crossing is the next upside target. Closes below the 20-day moving average crossing would confirm that a short-term top has been posted. HY Markets http://www.hymarkets.com