FMC: Currency/Forex Market Summary for Monday January 6th

The March Dollar closed lower due to profit taking on Monday as it consolidates some of the rally off December's low. The low range close sets the stage for a steady to lower opening when Tuesday's night session begins trading. Stochastics and the RSI are neutral to bullish signaling that sideways to higher prices are possible near term. Closes above the reaction high crossing at 81.00 would renew the rally off December's low and open the door for additional gains during January. Closes below the 20 day moving average crossing at 80.46 would temper the near term friendly outlook. First resistance is the reaction high crossing at 81.00. Second resistance is December's high crossing at 81.18. First support is the 20 day moving average crossing at 80.46. Second support is December's low crossing at 79.50.

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The March Euro closed higher due to short covering on Monday as it consolidated some of last week's decline. Today's high range close sets the stage for a steady to higher opening when Tuesday's night session begins trading. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near term. If March extends last week's decline, the reaction low crossing at 135.26 is the next downside target. Closes above the 20 day moving average crossing at 137.16 are needed to confirm that a low has been posted. First resistance is the 20 day moving average crossing at 137.16. Second resistance is December's high crossing at 138.93. First support is today's low crossing at 135.71. Second support is the reaction low crossing at 135.26.

The March British Pound closed lower on Monday. The high range close sets the stage for a steady to higher opening when Tuesday's night session begins trading. Stochastics and the RSI are turning bearish hinting that a short term top might be in or is near. Closes below the reaction low crossing at 1.6314 would confirm that a short term top has been posted. If March extends the rally off November's low, monthly resistance crossing at 1.6738 is the next upside target. First resistance is Tuesday's high crossing at 1.6572. Second resistance is monthly resistance crossing at 1.6738. First support is the reaction low crossing at 1.6314. Second support is the reaction low crossing at 1.6203.

The March Swiss Franc closed higher due to short covering on Monday but remains below November's broken uptrend line. The high range close sets the stage for a steady to higher opening when Tuesday's night session begins trading. Stochastics and the RSI are bearish signaling that sideways to lower prices is possible near term. If March extends last week's decline, the 38% retracement level of 2013's rally crossing at .10942 is the next downside target. Closes above the 20 day moving average crossing at .11210 would temper the near term bearish outlook. First resistance is the 20 day moving average crossing at .11210. Second resistance is December's high crossing at .11373. First support is today's low crossing at .11030. Second support is the 38% retracement level of 2013's rally crossing at .10942.

The March Canadian Dollar closed lower on Monday as it extends December's trading range. The low range close sets the stage for a steady to lower opening when Tuesday's night session begins trading. Stochastics and the RSI are neutral to bullish signaling that sideways to higher prices are possible near term. Closes above the reaction high crossing at 94.46 are needed to confirm an upside breakout of December's trading range has been posted. If March renews this fall's decline, weekly support crossing at 92.13 is the next downside target. First resistance is December's high crossing at 94.46. Second resistance is the reaction high crossing at 95.73. First support is December's low crossing at 92.93. Second support is weekly support crossing at 92.13.

The March Japanese Yen closed higher on Monday as it extended the short covering rally off last week's low. The high range close sets the stage for a steady to higher opening when Tuesday's night session begins trading. 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 at .9632 are needed to confirm that a short term low has been posted. If March renews the decline off October's high, weekly support crossing at .9421 is the next downside target. First resistance is the 20 day moving average crossing at .9632. Second resistance is the reaction high crossing at .9793. First support is last Thursday's low crossing at .9486. Second support is weekly support crossing at .9421.

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