FOREX TRADING

EUR/USD closed higher on Tuesday as it consolidates above the 10-day moving average crossing. The mid-range close sets the stage for a steady opening on Tuesday. Stochastics and the RSI are diverging but are turning bullish signalling that additional short-term gains are possible. If it extends the rally off June’s low, 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/JPY closed higher on Tuesday and above the 20-day moving average crossing confirming that a short-term low has been posted. The low-range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are diverging and are turning bearish signalling that sideways to lower prices are possible. If it extends today’s decline, the reaction low crossing is the next downside target. Closes above last Friday’s high crossing are needed to renew this year’s rally.

GBP/USD closed higher on Tuesday as it extends the rally off May’s low. The mid-range close sets the stage for a steady opening on Wednesday. Stochastics and the RSI are bullish signalling that sideways to higher prices are possible near-term. If it extends the aforementioned rally, 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 lower on Tuesday and below the 20-day moving average crossing confirming that a short-term top has been posted. The low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are bearish signalling that sideways to lower prices are possible near-term. If it extends today’s decline, the 25% retracement level of the June-July rally crossing is the next downside target. Closes above last Thursday’s high crossing are needed to renew the aforementioned rally.