Market Commentary Tuesday 07 September 2010
 
 
FOREIGN EXCHANGE
 
EUR/USD closed lower on Monday and the low-range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are bullish signalling that a short-term low is in or is near. If it extends last week's rally, the reaction high crossing is the next upside target. Closes below the reaction low crossing would renew the decline off August's high.
 
 
 
USD/JPY closed lower due to profit taking on Monday and the low-range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are neutral to bullish signalling that sideways to higher prices are possible near-term. Closes below last Monday's low crossing are needed to confirm that a short-term top has been posted.
 
 
 
GBP/USD closed lower on Monday and the mid-range close sets the stage for a steady opening on Tuesday. Stochastics and the RSI 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 would temper the near-term bearish outlook. If it extends last month's decline, the reaction low crossing is the next downside target.
 
 
 
USD/CHF closed lower on Monday as it consolidates some of this summer's rally. The low-range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are overbought and are turning bearish signalling that at the very least a correction is possible. Closes below the 20-day moving average crossing would confirm that a short-term top has been posted. If it extends this summer's rally, the 2009 high crossing is the next upside target.
 
 
BULLION
 
Gold 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 overbought, diverging but are neutral to bullish signalling that sideways to higher prices are possible near-term. If it extends the rally off July's low, June's 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.
 
 
 
Silver closed higher on Monday as it extends the rally off July's low. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are overbought but remain bullish signalling that sideways to higher prices are possible near-term. If it extends last week's rally, the July 2008 high crossing is the next upside target. Closes below the 20-day moving average crossing would confirm that a short-term top has been posted.
 
 
U.S. STOCK MARKET INDICES
 
DJI closed higher on Monday and the mid-range close sets the stage for a steady opening on Tuesday. Stochastics and the RSI are bullish signalling that additional strength is possible near-term. If the Dow extends last week's rally, the reaction high crossing is the next upside target. SPI closed unchanged on Monday and the low-range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI remain bullish signalling that additional gains are possible near-term. If it extends last week's rally, August's high crossing is the next upside target. NDI closed unchanged on Monday and the low-range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are bullish signalling that additional gains are possible near-term. If it extends last week's rally, August's high crossing is the next upside target.
 
Economic Indicators
http://www.piptrade.com/english/calendar/weeklycal.hyml
 
 
ENERGY
 
Crude Oil closed lower on Monday but remains above the 10-day moving average crossing. The mid-range close sets the stage for a steady opening on Tuesday. Stochastics and the RSI remain bullish signalling that sideways to higher prices are possible near-term. Closes above the 20-day moving average crossing are needed to confirm that a short-term low has been posted. If it renews the decline off August's high, May's low crossing is the next downside target.
 
 
 
Natural Gas closed lower on Monday and still above the 10-day moving average crossing signalling that a short-term low might be in or is near. The low-range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are oversold and are turning neutral to bullish hinting that a short-covering rebound is possible near-term. Closes above the 20-day moving average crossing would confirm that a short-term low has been posted.
 
 
COFFEE
 
Coffee closed unchanged on Monday due to market holiday. 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 this rally, August's high crossing is the next upside target. Closes below last Wednesday's low crossing would confirm that a top has been posted.