THE EURO closed higher due to short covering on Monday as it consolidated some of the decline off December's high. The highrange close sets the stage for a steady to higher opening when Tuesday's night session begins trading. Stochastics and the RSI remain neutral to bearish signalling that sideways to lower prices are possible nearterm. If it extends the aforementioned decline, monthly support crossing is the next downside target.

THE YEN closed higher on Monday. The highrange close sets the stage for a steady to higher opening when Tuesday's night session begins trading. Stochastics and the RSI are bearish signalling that sideways to lower prices are possible nearterm. If it extends the decline off January's high, the 50% retracement level of the OctoberJanuary rally crossing is the next downside target. Closes above the 20day moving average crossing would confirm that a shortterm bottom has been posted.

THE SWISS FRANC closed higher on Monday. The highrange close sets the stage for a steady to higher opening when Tuesday's night session begins trading. Stochastics and the RSI are bearish signalling that sideways to lower prices are possible nearterm. If it extends last week's rally, weekly resistance crossing is the next upside target. Closes above the 10day moving average crossing would confirm that a shortterm bottom has been posted.

STERLING closed higher on Monday. The highrange close sets the stage for a steady to higher opening when Tuesday's night session begins trading. Stochastics and the RSI remain neutral to bullish signalling that sideways to higher prices are possible nearterm. If it extends the decline off July's high, monthly support crossing is the next downside target. Closes below last Monday's low crossing would confirm that a shortterm top has been posted and signal that a shortterm trend change has taken place.