Market Commentary Tuesday 06 January 2009
 
 
FOREIGN EXCHANGE
 
EUR/USD closed sharply lower on Monday and below the 20-day moving average crossing confirming that a short-term top has been posted. 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, broken resistance crossing is the next downside target. Closes above the 10-day moving average crossing are needed to confirm that a short-term low has been posted.
 
 
 
USD/JPY closed higher on Monday and above the 10-day moving average crossing signalling that a short-term low has likely been posted. 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 bearish signalling that sideways prices are possible near- term. If it extends last week's decline, monthly support crossing is the next downside target.. Closes above the reaction high crossing are needed to confirm that a trend change has taken place.
 
 
 
GBP/USD closed higher on Monday and above the 10-day moving average crossing signalling that a short-term low has likely been posted. 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 bearish signalling that sideways prices are possible near- term. If it extends last week's decline, monthly support crossing is the next downside target. Closes above the 20-day moving average crossing would temper the near-term bearish outlook in the market.
 
 
 
USD/CHF closed higher on Monday and above the 10-day moving average crossing signalling that a short-term low has likely been posted. 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 bearish signalling that sideways prices are possible near- term. If it extends last week's decline, monthly support crossing is the next downside target. Closes above the reaction high crossing are needed to confirm that a trend change has taken place.
 
 
BULLION
 
Gold closed lower on Monday and below the 10-day moving average crossing signalling that a short-term top has been posted. The mid-range close sets the stage for a steady opening on Tuesday. Stochastics and the RSI are diverging and are turning bearish signalling that a short-term top might be in or is near. Closes below the 20-day moving average crossing are needed to confirm that a top has been posted. If it extends this fall's rally, October's high crossing is the next upside target.
 
 
 
Silver closed lower on Monday due to profit taking as it consolidates some of last week's rally. The mid-range close sets the stage for a steady opening on Tuesday. Stochastics and the RSI are bullish signalling that sideways to higher prices are possible near-term. If it extends the rally off October's low, the reaction high crossing is the next upside target. Closes below the 20-day moving average crossing are needed to confirm that a short-term top has been posted.
 
 
U.S. STOCK MARKET INDICES
 
DJI posted an inside day with a lower close on Monday as it consolidated some of last Friday's rally. The low-range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are bullish signalling that sideways to higher prices are possible near-term. SPI closed higher on Monday as it consolidates above broken resistance marked by December's high crossing. The mid-range close sets the stage for a steady opening on Tuesday. Stochastics and the RSI are bullish signalling that sideways to higher prices are possible near-term. NDI closed higher on Monday as it extended last week's rally. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are bullish signalling that sideways to higher prices are possible near-term. If it extends last week's rally, the reaction high crossing is the next upside target.
 
Economic Indicators
http://www.hyinvestment.com/english/Economic_Calendar.htm
 
 
ENERGY
 
Crude Oil closed higher on Monday as it extended the rally off December's low. Today's high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are bullish signalling that sideways to higher prices are possible near-term. If it extends today's rally, the reaction high crossing is the next upside target. Closes above the reaction high crossing are needed to confirm that a short-term low has been posted.
 
 
 
Natural Gas closed higher on Monday and the high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are neutral to bearish hinting that sideways to lower prices are possible near-term. If it extends last Wednesday's decline, December's low crossing is the next downside target. Closes above last Tuesday's high crossing are needed to renew the rally off December's low.
 
 
COFFEE
 
Coffee closed lower on Monday as it consolidated some of last Wednesday's rally. The mid-range close sets the stage for a steady opening on Tuesday. Stochastics and the RSI are bullish signalling that sideways to higher prices are possible near- term. Closes above the reaction high crossing are needed to renew the rally off December's low. If it renews Monday's decline, December's low crossing is the next downside target.