Forex Market Commentary From Hy Markets - Monday 8th October 2012

[HYMarkets]

FX - EURO

The EURO closed higher on Friday and the midrange close sets the stage for a steady opening on Monday. Stochastics and the RSI are neutral to bullish signalling that sideways to higher prices are possible nearterm. If it renews the rally off July's low, the 50% retracement level of this year's decline crossing is the next upside target. Closes below the 20day moving average crossing would confirm an end to the rally off July's low.

FX - YEN

The YEN closed higher on Friday and the midrange close sets the stage for a steady opening when Monday's night session begins trading. Stochastics and the RSI are bearish signalling that additional gains are possible. If it extends the decline off August's high, the 87% retracement level of this year's rally crossing is the next downside target. Closes above last Thursday's high would open the door for a possible test of August's high crossing.

FX - SWISS FRANC

The SWISS FRANC closed lower on Friday and the midrange close sets the stage for a steady opening when Monday'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 the decline off July's high, the reaction low crossing is the next downside target. Closes above the 20day moving average crossing would confirm that a shortterm bottom has been posted.

FX - STERLING

STERLING closed lower on Friday and the midrange close sets the stage for a steady opening when Monday's night session begins trading. Stochastics and the RSI remain neutral to bullish signalling that sideways to higher prices are possible nearterm. If it extends the rally off June's low, April's high crossing is the next upside target. Closes below the 20day moving average crossing would confirm that a shortterm top has been posted.