FOREX TRADING

EUR/USD closed higher on Friday as it extends last week’s breakout above the 38% retracement level of the 2009-2010-decline crossing. The high-range close sets the stage for a steady to higher opening on Monday. Stochastics and the RSI are overbought and are turning neutral to bearish hinting that a short-term top might be near. If it extends the rally off June’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/JPY closed lower on Friday as it extends the decline off May’s high. The mid-range close sets the stage for a steady to lower opening on Monday. Stochastics and the RSI are diverging but remain neutral to bearish signalling that sideways to lower prices are possible. If it extends the aforementioned decline, weekly support crossing is the next downside target. Closes above last Wednesday’s high crossing are needed to confirm that a short-term low has been posted.

GBP/USD closed higher on Friday and above the 62% retracement level of the 2009-2010-decline crossing as it extends the rally off May’s high. The high-range close sets the stage for a steady to higher opening on Monday. Stochastics and the RSI are overbought but remain neutral to bullish signalling that sideways to higher prices are possible near-term. If it extends the aforementioned rally, the 75% 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 Friday as it extends July’s trading range. The low-range close sets the stage for a steady to lower 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. Closes above last Tuesday’s low crossing would confirm that a short-term low has been posted. If it extends the decline off June’s high, the 87% retracement level of the 2009-2010-rally crossing is the next upside target.