Forex and Currency Market Commentary For Tuesday Evening

The U.S. Dollar closed higher on Tuesday as it extended last Friday's rally but remains above the 20 day moving average. The high range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near term. If March extends its current rally, November's high crossing at 77.27 is the next upside target. Closes below the 10 day moving average crossing at 75.43 would temper the near term friendly outlook in the Dollar. First resistance is today's high crossing at 76.61. Second resistance is November's high crossing at 77.27. First support is the 20 day moving average crossing at 75.55. Second support is the 10 day moving average crossing at 75.43.

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The March Euro closed sharply lower on Tuesday as it extends last week's breakout below the 20 day moving average crossing at 149.346. The low range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near term. If March extends this week's decline, November's low crossing at 146.250 is the next downside target. Closes above the 10 day moving average crossing at 149.557 would confirm that a short term low has been posted. First resistance is the 20 day moving average crossing at 149.346. Second resistance is the 10 day moving average crossing at 149.557. First support is today's low crossing at 146.750. Second support is November's low crossing at 146.250.

The March British Pound closed sharply lower on Tuesday as it extends last week's decline. The low range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near term. If March extends this week's decline, October's low crossing at 1.5718 is the next downside target. Closes above the reaction high crossing at 1.6731 would confirm that a short term low has been posted. First resistance is the 10 day moving average crossing at 1.6509. Second resistance is the 20 day moving average crossing at 1.6580. First support is today's low crossing at 1.6245. Second support is October's low crossing at 1.5718.

The March Swiss Franc closed lower on Tuesday as it extended last Friday's decline. The low range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near term. If March extends this decline, November's low crossing at .9690 is the next downside target. Closes above the 10 day moving average crossing at .9925 would confirm that a short term low has been posted. First resistance is the 20 day moving average crossing at .9904. Second resistance is the 10 day moving average crossing at .9925. First support is today's low crossing at .9729. Second support is November's low crossing at .9690.

The March Canadian Dollar closed lower due to profit taking on Tuesday and the low range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near term. Closes above the reaction high crossing at 96.08 or below 92.80 are needed to confirm a breakout of November's trading range and point the direction of the next trending move. First resistance is last Tuesday's high crossing at 96.08. Second resistance is October's high crossing at 97.92. First support is the reaction low crossing at 93.00. Second support is the reaction low crossing at 92.80.

The March Japanese Yen closed higher due to short covering on Tuesday as it consolidated some of last Friday's decline but remains below the 10 day moving average crossing at .11374. The high range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI remain bearish signaling that additional weakness is possible. If March extends last week's decline, October's low crossing at .10847 is the next downside target. Closes above the 10 day moving average crossing at .11374 are needed to confirm that a short term low has been posted. First resistance is today's high crossing at .11348. Second resistance is the 10 day moving average crossing at .11374. First support is last Friday's low crossing at .11024. Second support is October's low crossing at .10847.

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