FOREX TRADING

EUR/USD closed higher due to short covering on Monday as it consolidated some of this month’s decline. The mid-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are turning bullish signalling that sideways to higher prices are possible near-term. Closes above the 20-day moving average crossing are needed to confirm that a short-term low has been posted. If its renews this month’s decline, the 38% retracement level of the 2008- 2009-rally crossing is the next downside target.

USD/JPY closed slightly lower due to short covering on Monday as it consolidates some of this month’s rally. The mid-range close sets the stage for a steady opening on Tuesday. Stochastics and the RSI are oversold but remain neutral to bullish signalling that sideways to higher prices are possible near-term. If its renews the rally off November’s low, October’s high crossing is the next upside target.

GBP/USD closed higher due to short covering on Monday as it consolidated some of this month’s decline. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI remain neutral to bearish signalling that sideways to lower prices are possible near-term. If its extends this month’s decline, October’s low crossing is the next downside target. Closes above the 20-day moving average crossing would confirm that a short-term low has been posted.

USD/CHF closed lower due to long covering on Monday as it extends last week’s decline below the 10-day moving average crossing. The mid-range close sets the stage for a steady opening on Tuesday. Stochastics and the RSI are turning bearish signalling that sideways to lower prices are possible near-term. Closes below the 20-day moving average crossing are needed to confirm that a long-term high has been posted. If its renews this month’s rally, the 38% retracement level of the 2008-2009-decline crossing is the next upside target.

HY Markets
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