FOREX TRADING

EUR/USD closed lower on Monday and the low-range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are bullish signalling that a short-term low is in or is near. If it extends last week’s rally, the reaction high crossing is the next upside target. Closes below the reaction low crossing would renew the decline off August’s high.

USD/JPY closed lower due to profit taking on Monday and the low-range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are neutral to bullish signalling that sideways to higher prices are possible near-term. Closes below last Monday’s low crossing are needed to confirm that a short-term top has been posted.

GBP/USD closed lower on Monday and the mid-range close sets the stage for a steady opening on Tuesday. Stochastics and the RSI are turning neutral to bullish hinting that a short-term low might be in or is near. Closes above the 20-day moving average crossing would temper the near-term bearish outlook. If it extends last month’s decline, the reaction low crossing is the next downside target.

USD/CHF closed lower on Monday as it consolidates some of this summer’s rally. The low-range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are overbought and are turning bearish signalling that at the very least a correction is possible. Closes below the 20-day moving average crossing would confirm that a short-term top has been posted. If it extends this summer’s rally, the 2009 high crossing is the next upside target.