Foreign Exchange Market Commentary

EUR/USD closed lower on Monday as it renewed this month's decline. A short covering rebound tempered early losses 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 low might be in or is near. Closes above the 20-day moving average crossing are needed to confirm that a short-term low has been posted. If it extends this month's decline, the 50% retracement level of this year's rally crossing is the next downside target.

USD/JPY closed higher on Monday and the high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI remain neutral to bullish signalling that sideways to higher prices are possible near-term. If it extends this month's rally, the reaction high crossing is the next upside target. Closes below the reaction low crossing are needed to confirm that a short-term high has been posted.

GBP/USD closed lower on Monday thereby renewing this month's decline. The low-range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI remain neutral to bearish signalling that sideways to lower prices are possible near-term. If it extends this month's decline, the 50% retracement level of this year's rally crossing is the next downside target. Closes above the 20-day moving average crossing are needed to confirm that a short-term low has been posted.

USD/CHF closed higher on Monday. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are bearish signalling that sideways to lower prices are possible near-term. Closes below the 20-day moving average crossing are needed to confirm that a short-term high has been posted. If it renews this month's rally, this year's downtrend line crossing is the next upside target.