Monday, September 14, 2009

Foreign Exchange Market Commentary

EUR/USD closed slightly lower due to light profit taking on Friday as it consolidated some of this week's rally. The mid-range close sets the stage for a steady opening on Monday. Stochastics and the RSI are overbought but remain bullish signalling that sideways to higher prices are possible near-term. Closes below the reaction low crossing are needed to confirm that an important top has been posted.

USD/JPY closed sharply lower Friday and tested the 75% retracement level of the 2008-2009-rally crossing as it extends the decline off August's high. The low-range close sets the stage for a steady to lower opening on Monday. Stochastics and the RSI are bearish signalling that additional short-term gains are possible near-term. Closes above the 20-day moving average crossing are needed to confirm that a double bottom with July's low has been posted. .

GBP/USD closed higher on Friday as it extended this week's rally. Profit taking tempered early session gains and the mid-range close sets the stage for a steady opening on Monday. Stochastics and the RSI remain bullish signalling that sideways to higher prices are possible near-term. If it extends this week's rally, August's high crossing is the next upside target. Closes below the 20-day moving average crossing would temper the near-term bullish outlook in the market.

USD/CHF closed slightly higher on Friday as it extends this week's breakout below the 75% retracement level of the 2008-2009-rally crossing. Profit taking tempered early session gains and the low-range close sets the stage for a steady to lower opening on Monday. Stochastics and the RSI are overbought but remain bearish signalling that sideways to higher prices are possible near-term. Closes above the 20-day moving average crossing would confirm that a short-term bottom has been posted.

HY Markets
http://www.hymarkets.com

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