Market Commentary

MARKET COMMENTARY ON 21ST APRIL 2009

GBP/USD closed lower on Monday as it extends the decline off March's high. The low-range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI remain bearish signalling that sideways to lower prices are possible near-term. If it extends today's decline, the reaction low 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.

EUR/USD closed lower on Monday as it extends the decline off March's high. The low-range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI remain bearish signalling that sideways to lower prices are possible near-term. If it extends today's decline, the reaction low 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/CHF closed sharply lower on Friday and below the previous reaction low crossing. The low-range close sets the stage for a steady to lower opening on Monday. Stochastics and the RSI are diverging but are bearish signalling that sideways to lower prices are possible near-term. If it extends today's decline, March's low crossing is the next downside target. Closes above the reaction high crossing would confirm that a short-term low has been posted.

USD/JPY closed higher due to short covering on Monday as it consolidated some of this month's decline. The mid-range close sets the stage for a steady opening on Tuesday. Stochastics and the RSI remain neutral to bullish signalling that sideways to higher prices are possible near-term. Closes above the 20-day moving average crossing would temper the near-term bearish outlook. If it extends this month's decline, the 75% retracement level of last fall's rally crossing is the next downside target.