Forex Market Commentary 03.02.2015

FX - EURO

THE EURO closed higher on Monday as it extends the rally off this month's low. The highrange close sets the stage for a steady to higher opening when Tuesday's night session begins trading. Stochastics and the RSI are 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 10day moving average crossing would signal that a shortterm top has been posted. If it renews the decline off December's high, the 50% retracement level of the JulyDecember rally crossing is the next downside target.

FX - YEN

THE YEN closed higher on Monday. Monday's lowrange close sets the stage for a steady to lower opening when Tuesday'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 renews the decline off January's high, the 62% retracement level of the OctoberJanuary rally crossing is the next upside target. Closes above the 20day moving average crossing would confirm that a shortterm bottom has been posted.

FX - SWISS FRANC

THE SWISS FRANC closed higher on Monday and the midrange close sets the stage for a steady to higher opening when Tuesday's night session begins trading. Stochastics and the RSI remain neutral to bearish signalling that sideways to lower prices are possible nearterm. If it extends this winter's decline, weekly resistance crossing is the next upside target. Closes below the 20day moving average crossing would confirm that a shortterm bottom has been posted.

FX - STERLING

STERLING closed lower on Monday. The lowrange close sets the stage for a steady to lower opening when Tuesday's night session begins trading. Stochastics and the RSI are neutral to bullish signalling that sideways to higher prices are possible nearterm. If itextends the rally off last week's low, monthly resistance crossing is the next upside target. Closes below the 10day moving average crossing would confirm that a shortterm top has been posted.