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Article source: actionforex.com

Foreign Exchange Market Commentary

THE EURO closed higher on Friday as it extends the rally off April’s low. The highrange close sets the stage for a steady to higher opening when Monday’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 rally off April’s low, February’s high crossing is the next upside target. Closes below the 20day moving average crossing would confirm that a shortterm top has been posted.

THE YEN closed higher on Friday. The highrange close sets the stage for a steady to higher opening when Monday’s night session begins trading. Stochastics and the RSI are neutral to bearish signalling that sideways to lower prices are possible nearterm. Closes below March’s low crossing are needed to renew the decline off March’s high. Closes above the reaction high crossing would open the door for additional strength nearterm.

THE SWISS FRANC closed lower on Thursday. The midrange close sets the stage for a steady to lower opening when Friday’s night session begins trading. Stochastics and the RSI are neutral to bearish signalling that sideways to lower prices are possible nearterm. If it renews the decline off April’s high, the 62% retracement level of the JanuaryMarchrally crossing is the next downside target. Closes above the 20day moving average crossing would confirm that a shortterm bottom has been posted.

STERLING closed lower due to profit taking on Friday as it consolidates some of the rally off April’s low. The lowrange close sets the stage for a steady to lower opening when Monday’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 rally off April’s low, the 62% retracement level of the JulyAprildecline crossing is the next upside target. Closes below the 20day moving average crossing would confirm that a shortterm top has been posted.

Gary Beal