Foreign Exchange Market Commentary

EUR/USD closed higher on Monday as U.S. stocks dropped, prompting investors to sell higher-yielding assets. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are oversold but remain neutral to bearish signalling that sideways to lower prices are possible near-term.If it extends today's rally, October's high crossing is the next upside target. Closes below the reaction low crossing are needed to confirm that a short-term top has been posted.

USD/JPY closed higher on Monday as U.S. stocks fell during trading. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are oversold but remain neutral to bearish signalling that sideways to lower prices are possible near-term. If it extends today's rally, October's high crossing is the next upside target. Closes below the reaction low crossing are needed to confirm that a short-term top has been posted.

GBP/USD closed higher on Monday due to short covering but remains below October's low. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are oversold but remain neutral to bearish signalling that sideways to lower prices are possible near-term. If it extends today's rally, October's high crossing is the next upside target. Closes below the reaction low crossing are needed to confirm that a short-term top has been posted.

USD/CHF closed lower on Monday as it consolidated some of last week's rally. The low-range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are oversold signalling that sideways to lower prices are possible near-term. If it extends this fall's decline, the 62% retracement level 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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