Foreign Exchange Market Commentary

Jan 10

Foreign Exchange Market Commentary

Posted by admin

EUR/USD closed higher on Wednesday as it consolidates above the 10-day moving average crossing. The high-range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI remain 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 higher on Wednesday ending a two-day short covering bounce. The high-range close sets the stage for a steady to higher opening on Thursday. At the same time, stochastics and the RSI are turning neutral to 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 short-term high has been posted. If it resumes the rally off November’s low, the 62% retracement level crossing is the next upside target.

GBP/USD closed slightly lower on Wednesday as it extended some of this week’s decline. The mid-range close sets the stage for a steady opening on Thursday. Stochastics and the RSI are turning neutral to bearish signalling that sideways to lower prices are possible near-term. If it renews the decline off November’s high, October’s low crossing is the next downside target. Closes above Monday’s high crossing are needed to confirm that a short-term low has been posted.

USD/CHF closed lower on Wednesday as it extends this week’s decline below the 20-day moving average. The low-range close sets the stage for a steady to lower opening on Thursday. 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.