Article source: actionforex.com

Foreign Exchange Market Commentary

ForexTHE EURO closed slightly higher on Wednesday as it consolidates some of the decline off May’s high. The midrange close sets the stage for a steady to higher opening when Thursday’s night session begins trading. Stochastics and the RSI are oversold but remain neutral to bearish signalling that sideways to lower prices are possible nearterm. If it extends the aforementioned decline, the reaction low crossing is the next downside target. Closes above the 20day moving average crossing would confirm that a shortterm low has been posted.

THE YEN closed higher on Wednesday as it extends Tuesday’s breakout to the upside of this year’s trading range. The highrange close sets the stage for a steady to higher opening when Thursday’s night session begins trading. Stochastics and the RSI are overbought but remain neutral to bullish signalling that sideways to higher prices are possible nearterm. If it extends this week’s rally, monthly support crossing is the next upside target. Closes below the 20day moving average crossing are needed to confirm that a high has been posted.

THE SWISS FRANC closed slightly lower on Wednesday as it consolidates some of the rally off May’s high. The midrange close sets the stage for a steady opening when Thursday’s night session begins trading. Stochastics and the RSI are overbought but remain neutral to bullish signalling that sideways to higher prices are possible nearterm. If it extends the aforementioned rally, the reaction high crossing is the next upside target. Closes below the 20day moving average crossing are needed to confirm that a shortterm bottom has been posted.

STERLING closed lower on Wednesday as it extends the decline off May’s high. The lowrange close sets the stage for a steady to lower opening when Thursday’s night session begins trading. Stochastics and the RSI are neutral to bearish signaling that sideways to lower prices are possible nearterm. If it extends the decline off May’s high, its gap crossing is the next downside target. Closes above last Thursday’s high crossing would confirm that a low has been posted.

Gary Beal