FMC Extreme Currency Market Summary for Thursday July 18th

The September Dollar closed higher due to short covering on Thursday as it consolidates some of Tuesday's decline. The mid range close sets the stage for a steady opening when Friday's night session begins trading. Stochastics and the RSI are oversold but remain bearish signaling that sideways to lower prices are possible near term. If September extends this month's decline, the 62% retracement level of the June-July rally crossing at 82.27 is the next downside target. Closes above the 10 day moving average crossing at 83.57 would confirm that a short term low has been posted. First resistance is the 10 day moving average crossing at 83.57. Second resistance is July's high crossing at 84.96. First support is Wednesday's low crossing at 82.47. Second support is the 62% retracement level of the June-July rally crossing at 82.27.

The September Euro closed slightly lower on Thursday as it consolidates some of Tuesday's rally. The high range close sets the stage for a steady to higher opening when Friday's night session begins trading. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near term. If September extends the rally off July's low, June's high crossing at 134.24 is the next upside target. Closes below the 10 day moving average crossing at 130.00 would confirm that a short term top has been posted. First resistance is last Thursday's high crossing at 132.12. Second resistance is June's high crossing at 134.24. First support is the 10 day moving average crossing at 130.00. Second support is July's low crossing at 127.55.

The September British Pound closed higher on Thursday as it extended yesterday's breakout above the 20-day moving average confirming that a short term low has been posted. The high-range close sets the stage for a steady to higher opening when Friday's night session begins trading. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near term. If September extends the rally off July's low, the reaction high crossing at 1.5298 is the next upside target. Closes below the 10 day moving average crossing at 1.5054 would confirm that a short term top has been posted. First resistance is the reaction high crossing at 1.5298. Second resistance is the reaction high crossing at 1.5523. First support is the 10-day moving average crossing at 1.5054. Second support is July's low crossing at 1.4806.

The September Swiss Franc closed lower due to profit taking on Thursday but remain above the 20 day moving average crossing at .10568. The low range close sets the stage for a steady to lower opening when Friday's night session begins trading. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near term. If September extends the rally off last week's low, the reaction high crossing at .10829 is the next upside target. Closes below the 10 day moving average crossing at .10497 would temper the near term friendly outlook. First resistance is Wednesday's high crossing at .10693. Second resistance is the reaction high crossing at .10829. First support is last Thursday's gap crossing at .10446. Second support is the 87% retracement level of the May-June rally crossing at .10284.

The September Canadian Dollar closed higher on Thursday as it extends this week's trading range above the 20 day moving average. The high range close sets the stage for a steady to higher opening when Friday's night session begins trading. Stochastics and the RSI remain neutral to bullish signaling that sideways to higher prices are possible near term. If September renews the rally off last week's low, June's high crossing at 98.46 is the next upside target. Closes below the 20-day moving average crossing at 95.33 would confirm that a short term top has been posted. First resistance is last Thursday's high crossing at 96.69. Second resistance is June's high crossing at 98.46. First support is the 20 day moving average crossing at 95.33. Second support is July's low crossing at 94.09.

The September Japanese Yen closed lower on Thursday and below the reaction low crossing at .9949. The low range close sets the stage for a steady to lower opening when Friday's night session begins trading. Stochastics and the RSI are neutral signaling that sideways to lower prices are possible near term. If September renews the decline off June's high, July's low crossing at .9852 is the next downside target. Closes above the reaction high crossing at .10184 are needed to confirm that a low has been posted. First resistance is the reaction high crossing at .10184. Second resistance is the reaction high crossing at .10318. First support is July's low crossing at .9852. Second support is the reaction low crossing at .9757.