Foreign Exchange Market Commentary February 1, 2012

The EURO closed lower on Tuesday as it consolidates some of the rally off January's low. The lowrange close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI remain neutral to bullish signalling that sideways to higher prices are possible nearterm. If it extends this month's rally, the 38% retracement level of the aforementioned decline crossing is the next upside target. Closes below the 20day moving average crossing would temper the nearterm friendly outlook.

The YEN closed lower on Tuesday and the lowrange close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are bearish signalling that sideways to lower prices are possible nearterm. If it extends last week's decline, the reaction low crossing is the next downside target. Closes above Wednesday's high crossing would renew this month's rally.

The SWISS FRANC closed higher on Tuesday as it consolidated some of this month's decline. The highrange close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI remain neutral to bearish signalling that sideways to lower prices are possible nearterm. If it extends this month's decline, the reaction low crossing is the next downside target. Closes above the 20day moving average crossing would temper the nearterm friendly outlook.

STERLING closed higher on Tuesday and the midrange close sets the stage for a steady opening on Wednesday. Stochastics and the RSI remain neutral to bullish signalling that sideways to higher prices are possible nearterm. If it extends the rally off this month's low, December's high crossing is the next upside target. Closes below the 20day moving average crossing would temper the nearterm friendly outlook.

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