FOREX TRADING

EUR/USD closed higher on Friday as it consolidates above the 10-day moving average crossing. The high-range close sets the stage for a steady to higher opening on Monday. However, stochastics and the RSI have turned 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 s the next upside target.

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

GBP/USD closed sharply higher on Friday and posted a new high close for the rally off May’s low. The high-range close sets the stage for a steady to higher opening on Monday. Stochastics and the RSI are turning neutral to bullish signalling that sideways to higher prices are possible near-term. If it resumes the rally off May’s low, the 50% 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 higher on Friday and below the 10-day moving average crossing signalling that a short-term low is in or is near. The high-range close sets the stage for a steady to higher opening on Monday. Stochastics and the RSI are overbought, diverging and are turning bullish hinting 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 extends the decline off June’s high, the 75% retracement level of the 2009-2010-rally crossing is the next downside target.