FOREX TRADING

EUR/USD posted a key reversal up on Monday and closed above the 10-day moving average crossing signalling that a short-term low has been posted. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI remain 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 it renews the decline off December’s high, the 38% retracement level of the 2008-2009-rally crossing is the next downside target.

USD/JPY closed lower due to short covering on Monday as it consolidated some of the rally off November’s low but remains above the 50% retracement level of this year’s decline crossing. The low-range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI remain neutral to bullish signalling that sideways to higher prices are possible near-term. If it 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 closed lower due to profit taking on Monday as it consolidated some of last Thursday’s rally. The low-range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI remain bullish signaling 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 it renews the decline off November’s high, October’s low crossing is the next downside target.

USD/CHF posted a key reversal down on Monday and closed below the 20-day moving average crossing confirming that a short-term high has been posted. The low-range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI remain bearish signalling that sideways to lower prices are possible near-term. If it extends the decline off the December high, the 50% retracement level of the November-December rally crossing is the next downside target. Closes above last Wednesday’s high crossing are needed to confirm that a short-term bottom has been posted.

HY Markets
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