FOREX TRADING

EUR/USD closed higher on positive data for Europe’s manufacturing and service sectors on Thursday and above the 10-day moving average crossing. The high-range close sets the stage for a steady to higher opening on Friday. However, stochastics and the RSI are turning bearish hinting that a short-term top might be in or is near. Closes below the 20-day moving average crossing are needed to confirm that a short-term top has been posted. If it renews the rally off June’s low, the 38% retracement level of the 2009-2010-decline crossing is the next upside target.

USD/JPY closed slightly higher on Thursday and the high-range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI are diverging and are turning bearish hinting that a short-term top might be in or is near. Multiple closes below the 20-day moving average crossing would confirm that a short-term high has been posted. If it extends the decline off May’s high, last November’s low crossing is the next downside target.

GBP/USD closed higher on Thursday as it rebounds off support marked by the 20-day moving average crossing. The high-range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI remain 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 top has been posted. If it resumes the rally off May’s low, the 50% retracement level of the 2009-2010-decline crossing is the next upside target.

USD/CHF closed lower on Thursday and the low-range close sets the stage for a steady to lower opening on Friday. Stochastics and the RSI are overbought, diverging but are turning neutral hinting that sideways to lower prices are possible near-term. If it extends the decline off June’s high, the 75% 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.