FOREX TRADING

EUR/USD closed lower on Wednesday as it consolidated some of the rebound off last week’s low. A short covering rally tempered early session losses and the high-range close sets the stage for a steady to higher opening on Thursday. 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 lower on Wednesday as it extends this week’s rally above the 50% retracement level of this year’s decline crossing. The high-range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are oversold but remain neutral to bullish signalling that sideways to higher prices are possible near-term. If its extends the rally off November’s low, the 62% retracement level crossing is the next upside target. Closes below the 20-day moving average crossing would confirm that a short-term high has been posted.

GBP/USD posted a key reversal up on Wednesday and closed above the 10-day moving average crossing signalling that a short-term low might be in place. The high-range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are oversold but are turning neutral to 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 extends this month’s decline, October’s low crossing is the next downside target

USD/CHF closed slightly higher due to loss taking on Wednesday as it consolidated some of last week’s decline but remains below the 10-day moving average crossing. The low-range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI are bearish signalling that sideways to lower prices are possible near-term. Closes below Tuesday’s low crossing are needed to confirm that a short-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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