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Currency Market Commentary - Wednesday 01 Sep 2010
Posted by admin | Posted in Forex Power, Forex Trading, Paper Investments | Posted on 02-09-2010
The September Dollar closed lower due to profit taking on Wednesday as it consolidates some of last month’s rally. The low-range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI are overbought and are turning bearish hinting that a short-term top might be in or is near. Closes below the 20-day moving average crossing at 82.45 would temper the near-term friendly outlook. If September renews August’s rally, the reaction high crossing at 84.73 is the next upside target. First resistance is last Tuesday’s high crossing at 83.64. Second resistance is the reaction high crossing at 84.73. First support is the 20-day moving average crossing at 82.45. Second support is the reaction low crossing at 81.99.
The September Euro closed higher due to short covering on Wednesday as it consolidates some of the decline off this month’s high. The high-range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are turning bullish signaling that a short-term low is in or is near. Closes above the 20-day moving average crossing at 128.483 would temper the bearish outlook. If September renews last month’s decline, the reaction low crossing at 125.240 is the next downside target. First resistance is the 20-day moving average crossing at 128.483. Second resistance is August’s high crossing at 133.330. First support is last Tuesday’s low crossing at 125.870. Second support is the reaction low crossing at 125.240.
The September British Pound closed higher due to short covering on Wednesday and the high-range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are oversold but remain neutral to bearish signaling that additional weakness is possible near-term. If September extends last month’s decline, the reaction low crossing at 1.5122 is the next downside target. Closes above the 20-day moving average crossing at 1.5603 would temper the near-term bearish outlook. First resistance is the 20-day moving average crossing at 1.5603. Second resistance is the reaction high crossing at 1.5701. First support is Tuesday’s low crossing at 1.5325. Second support is the reaction low crossing at 1.5122.
The September Swiss Franc closed higher on Wednesday as it extends this summer’s rally. Profit taking tempered early gains and the low-range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI remain neutral to bullish signaling that sideways to higher prices are possible near-term. If September extends this summer’s rally, the 2009 high crossing at .10038 is the next upside target. Closes below the 20-day moving average crossing at .9641 would confirm that a short-term top has been posted. First resistance is today’s high crossing at .9937. Second resistance is the 2009 high crossing at .10038. First support is the 10-day moving average crossing at .9728. Second support is the 20-day moving average crossing at .9641.
The September Canadian Dollar closed higher on Wednesday as it extends the trading range of the past seven days. The high-range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are oversold and are turning neutral to bullish hinting that a short-term low might be in or is near. Closes above the 20-day moving average crossing at 95.71 are needed to confirm that a low has been posted. If September renews last month’s decline, May’s low crossing at 92.22 is the next downside target. First resistance is the reaction high crossing at 95.46. Second resistance is the 20-day moving average crossing at 95.71. First support is Tuesday’s low crossing near 93.66. Second support is May’s low crossing at 92.22.
The September Japanese Yen closed lower due to profit taking on Wednesday and the low-range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI are diverging but are turning neutral to bullish signaling that sideways to higher prices are possible near-term. Closes below Monday’s low crossing at .11641 are needed to confirm that a short-term top has been posted. First resistance is last Tuesday’s high crossing at .11966. First support is the 20-day moving average crossing at .11737. Second support is Monday’s low crossing at .11641.














