Market Commentary

MARKET COMMENTARY ON 13TH MARCH 2009

GBP/USD closed higher due to short covering on Thursday as it consolidated some of this week's decline. The high-range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI are neutral to bearish signaling that sideways to lower prices are possible near-term. If June renews this week's decline, January's low crossing is the next downside target. Closes above the 20-day moving average crossing are needed to confirm that a bottom has been posted.

EUR/USD closed higher on Thursday as it extends yesterday's breakout above the 20-day moving average crossing. The high-range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI are bullish signaling that a low might be in or is near. Closes above the reaction high crossing are needed to confirm that a short-term low has been posted. If June renews this year's decline, October's low crossing is the next downside target.

USD/CHF closed sharply lower on Thursday and spiked below February's low crossing. The low-range close sets the stage for a steady to lower opening on Friday. Stochastics and the RSI are turning bearish signaling that sideways to lower prices are possible near-term. Closes above the reaction high crossing are needed to renew the rally off February's low.

USD/CAD closed higher due to short covering on Thursday as it consolidates above December's low crossing. The high-range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI are turning bullish hinting that a short-term low might be in or is near. If June extends this year's decline, weekly support crossing is the next downside target. Closes above the 20-day moving average crossing are needed to confirm that a short-term low has been posted.

USD/JPY closed lower on Wednesday but remains above the 62% retracement level of the August-January rally crossing. The low-range close sets the stage for a steady to lower opening on Friday. Stochastics and the RSI are turning bullish hinting that a short-term low might be in or is near. Closes above the 20-day moving average crossing are needed to confirm that a short-term low has been posted. If June extends this year's decline, the 75% retracement level of the August-January rally crossing is the next downside target.