Foreign Exchange Market Commentary

Daily Forex Technicals | Written by HY Markets | Oct 06 09 03:47 GMT |

EUR/USD closed higher on Monday and above the 10-day moving average crossing. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are turning neutral hinting that a short-term low might be in or is near. Multiple closes above the 10-day moving average crossing are needed to signal that a low has been posted. If it extends last week's decline, September's low crossing is the next downside target. USD/JPY closed higher on Monday as it consolidates above the 75% retracement level of the 2008-2009- decline crossing. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are turning neutral signalling that sideways trading is possible near-term. If it extends the rally off August's low, the 2008 high crossing is the next upside target. Closes below the 20-day moving average crossing are needed to confirm that a short-term top has been posted. GBP/USD close higher due to short covering on Monday but remains below the lower boundary of this summer's trading range crossing. The low-range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are oversold but remain neutral signalling that sideways to lower prices are possible near-term. If it extends the decline off September's high, the 50% retracement level of this year's rally crossing is the next downside target. Closes above the 20-day moving average crossing would temper the near-term bearish outlook in the market. USD/CHF closed higher due to short covering on Monday and above the 10-day moving average crossing. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are turning neutral hinting that sideways trading is possible near-term. Multiple closes above the 10-day moving average crossing would temper the near-term bearish outlook. If it extends the decline off September's high, September's low crossing is the next downside target. HY Markets http://www.hymarkets.com