Foreign Exchange Market Commentary

EUR/USD closed lower on Thursday as it continued to fall against the dollar. The mid-range close sets the stage for a steady to lower opening on Friday. Stochastics and the RSI are underbought 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.

USD/JPY gapped down and closed lower on Thursday. The low-range close sets the stage for a steady to lower opening on Friday. Stochastics and the RSI are underbought 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 below the 10-day moving average crossing are needed to confirm that a short- term top has been posted.

GBP/USD closed lower on Thursday as it fell against the dollar. The mid-range close sets the stage for a steady to lower opening on Friday. 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 below the 10-day moving average crossing are needed to confirm that a short- term top has been posted.

USD/CHF closed slightly higher on Thursday due to short covering. The high-range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI are overbought but remain neutral to bullsh signalling that sideways to higher prices are possible near-term. If it extends recent gains, 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.

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