FX Market Commentary 12/31/2014

FX – EURO

THE EURO closed slightly higher on Tuesday as it extends this year's rally. The midrange close sets the stage for a steady to lower opening when Wednesday'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 this year's decline, monthly support crossing is the next downside target. Closes above the 20day moving average crossing would confirm that a shortterm low has been posted.

FX – YEN

THE YEN closed lower on Tuesday. The lowrange close sets the stage for a steady to lower opening when Wednesday's night session begins trading. Stochastics and the RSI remain neutral to bullish signalling that sideways to higher prices are possible nearterm. Closes below today's low crossing would confirm that a high has been posted. If it renews this year's rally, weekly resistance crossing is the next upside target.

FX - SWISS FRANC

THE SWISS FRANC closed lower on Tuesday as it extends this month's decline. The midrange close sets the stage for a steady to lower opening when Wednesday'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. Closes below the 20day moving average crossing are needed to confirm that a high has been posted.

FX – STERLING

STERLING closed higher on Tuesday. The highrange close sets the stage for a steady to higher opening when Wednesday'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 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.