USDCHF closed lower on Monday as it consolidated some of this month's rally. The low-range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are oversold but remain neutral to bullish signalling that sideways to higher prices are possible near-term. If it extends the aforementioned rally, the 38% retracement level of the May-October decline crossing is the next upside target. Closes below the 20-day moving average crossing would temper the near-term bullish outlook.
Yen
USDJPY closed higher on Monday as it extends the rally off November's low. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are oversold but remain neutral to bullish signalling that sideways to higher prices are possible near-term. If it extends this month's rally, the 38% retracement level of the May-November decline crossing is the next upside target. Closes below the 20-day moving average crossing would confirm that a short-term top has been posted.
Pound
GBPUSD closed lower on Monday as it extends the decline off November's high. The low-range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are oversold but remain bearish signalling that sideways to lower prices are possible near-term. If it extends November's decline, the 50% retracement level of the May-November rally crossing is the next downside target. Closes above the 20-day moving average crossing would confirm that a short-term low has been posted.
Euro
EURUSD closed lower on Monday and tested the 50% retracement level of the June-November rally crossing as it extends this month's decline. The low-range close sets the stage for a steady to lower opening on Tuesday.
Stochastics and the RSI are oversold but remain bearish signalling that sideways to lower prices are possible near-term. If it extends this month's decline, the 62% retracement level of the June-November rally crossing is the next downside target. Closes above the 20-day moving average crossing would confirm that a short-term low has been posted.
