Daily Forex Commentary: Euro, USDJPY |
The EURO closed lower on Friday and below the 10 day moving average crossing suggesting that a short term top may have posted. The low range close could have set the stage for a steady to lower opening on Monday. Stochastics and the RSI are turning bearish suggesting that sideways to lower prices are possible near term. A close below the 20 day moving average crossing could be needed to confirm that a short term top has been posted. If it extends the rebound off May's low, the 87% retracement level of May's decline crossing is the next upside level.
USDJPY closed higher on Friday as it consolidates some of the decline off May's high. The high range close could set the stage for a steady to higher opening on Monday. Stochastics and the RSI are turning bullish hinting that a short term bottom might be in place. A close above the 20 day moving average crossing is needed to suggest that a short term bottom has been posted. If it extends the decline off May's high, May's low crossing is the next downside level.
About the author: Ava FX Analysts Department
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