Foreign Exchange Market Commentary

EUR/USD closed lower on Thursday and below the 10-day moving average crossing. The low-range close sets the stage for a steady to lower opening on Friday. Stochastics and the RSI remain bullish hinting that a short-term low might be in or is near. Closes above the reaction high crossing are needed to confirm that a short-term low has been posted. If it renews this fall's decline, weekly support crossing is the next downside target.

USD/JPY closed lower on Thursday as it extends this fall's decline. The mid-range close sets the stage for a steady opening on Friday. Stochastics and the RSI are neutral to bearish hinting that sideways to lower prices are possible near-term. If it extends this fall's decline, weekly support crossing is the next downside target. Closes above the 20-day moving average crossing would confirm that a short-term low has been posted.

GBP/USD closed lower on Thursday as it consolidates below resistance marked by the 10-day moving average crossing. The low-range close sets the stage for a steady to lower opening on Friday. Stochastics and the RSI are bearish hinting that sideways to lower prices are possible near-term. If it renews this fall's decline, the 87% retracement level of the 2001-2007-rally crossing is the next downside target. Closes above the reaction high crossing are needed to confirm that a short-term low has been posted.

USD/CHF closed higher on Thursday as it consolidates some of this week's decline but remains below the 10- day moving average crossing. The high-range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI remain neutral to bearish hinting that sideways to lower prices are possible near-term. If it extends the decline off October's high, the reaction low crossing is the next downside target. Closes above the 10-day moving average crossing are needed to confirm that a short-term low has been posted.

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