Foreign Exchange Market Commentary

EUR/USD closed slightly higher on Wednesday as it extends this week's rally. Stochastics and the RSI remain bullish hinting that sideways to higher prices are possible near-term. The high-range close sets the stage for a steady to higher opening on Thursday. If it extends this week's rally, the reaction high crossing is the next upside target. If it renews this summer's decline, the 87% retracement level of the 2007-2008 rally crossing is the next downside target.

USD/JPY closed lower on Wednesday as it extends this summer's decline. A short covering rally tempered early losses and the mid-range close sets the stage for a steady opening on Thursday. Stochastics and the RSI are oversold but remain neutral to bearish hinting that sideways to lower prices are possible near-term. If it extends this month's decline, monthly support 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.

GBP/USD closed lower on Wednesday as it extends this summer's decline. A short covering rally tempered early losses and the mid-range close sets the stage for a steady opening on Thursday. Stochastics and the RSI are oversold but remain neutral to bearish hinting that sideways to lower prices are possible near-term. If it extends this month's decline, monthly support 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 slightly lower on Wednesday but remains above key support marked by the 62% retracement level of this year's rally crossing. A short covering rally tempered early losses and the high-range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are neutral to bullish hinting that a short-term 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 renews this summer's decline the 75% retracement level of the aforementioned rally crossing is the next downside target.

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