FOREX TRADING

EUR/USD closed lower on Tuesday and below the 20-day moving average crossing tempering the near-term friendly outlook. The mid-range close sets the stage for a steady opening on Wednesday. Stochastics and the RSI are overbought and are turning neutral to bearish hinting that the market is vulnerable to additional weakness near-term. If it renews this month rally, the reaction high crossing is the next upside target.

USD/JPY closed lower on Tuesday as it extends this month’s decline. The low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are overbought but remain neutral to bearish signalling that sideways to lower prices are possible near-term. If it extends this month’s decline, May’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.

GBP/USD closed lower due to profit taking on Tuesday as it consolidates some of the rally off May’s low. The mid-range close sets the stage for a steady opening on Wednesday. Stochastics and the RSI are overbought but remain neutral to bullish signalling that sideways to higher prices are possible near-term. If it extends this month’s rally, the 38% retracement level of the 2009-2010-decline crossing is the next upside target. Closes below the 20-day moving average crossing are needed to confirm that a short-term top has been posted.

USD/CHF closed lower on Tuesday as it extends this month’s decline. The low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are overbought but remain neutral to bearish signalling that sideways to lower prices are possible near-term. If it extends this month’s decline, the 38% retracement level of the 2009-2010-rally crossing is the next downside target. Closes above the 20-day moving average crossing are needed to confirm that a short-term low has been posted.