FX Market Commentary 12/22/2014

FX - EURO

THE EURO closed lower on Friday as it renewed this year's decline. The lowrange close sets the stage for a steady to lower 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. If it extends this year's decline, monthly support crossing is the next downside target. Closes above Tuesday's high crossing would confirm that a shortterm low has been posted.

FX - YEN

THE YEN closed higher on Friday. The highrange close sets the stage for a steady to higer opening when Monday's night session begins trading. Stochastics and the RSI are neutral to bullish signalling that sideways to higher prices are possible nearterm. If it renews this year's rally, weekly resistance crossing is the next upside target. If it extends the decline off December's high, the 25% retracement level of the 20132014rally crossing is the next downside target.

FX - SWISS FRANC

THE SWISS FRANC closed higher on Friday extending this month's rally. The highrange close sets the stage for a steady to higher opening when Monday's night session begins trading. Stochastics and the RSI remain bullish signalling that sideways to higher prices are possible nearterm. If it extends the rally off July's low, monthly resistance crossing is the next upside target.If it renews the decline off December's high,Tuesday's low crossing is the next downside target.

FX - STERLING

STERLING closed lower on Friday. The lowrange close sets the stage for a steady to lower opening when Monday's night session begins trading. Stochastics and the RSI are turning neutral to bearish signalling that sideways to lower prices are possible nearterm. If it extends the decline off July's high, monthly support crossing is the next downside target. Closes above the reaction high crossing are needed to confirm that a low has been posted.