FOREX TRADING

EUR/USD closed lower on Friday ending a two-day short covering rally. The low-range close sets the stage for a steady to lower opening on Monday. Stochastics and the RSI are oversold and are turning bullish hinting that a low might be in or is near. Closes above the 20-day moving average crossing are needed to confirm that a short-term low has been posted. If June resumes this year’s decline, monthly support crossing is the next downside target.

USD/JPY closed higher on Friday as it consolidates some of last week’s decline. The high-range close sets the stage for a steady to higher opening on Monday. Stochastics and the RSI are neutral to bearish signalling that sideways to lower prices are possible near-term. If it renews last week’s decline, the reaction low crossing is the next downside target. If it renews last week’s rally, the reaction high crossing is the next upside target.

GBP/USD closed lower due to profit taking on Friday ending a two-day correction off Tuesday’s low. The low-range close sets the stage for a steady to lower opening on Monday. Stochastics and the RSI are turning bullish signalling that sideways to higher prices are possible near-term. Closes above the reaction high crossing are needed to confirm that a low has been posted. If June renews this week’s decline, May’s low crossing is the next downside target.

USD/CHF closed higher due to profit taking on Friday while extending the trading range of the past three weeks. The high-range close sets the stage for a steady to higher opening on Monday. Stochastics and the RSI remain bearish signalling that a short-term high might be in or is near. Closes below the reaction low crossing are needed to confirm that a short-term high has been posted. If it resumes this spring’s rally, weekly support crossing is the next upside target.