Foreign Exchange Market Commentary

EUR/USD closed higher on Friday due to short covering but remains below the 10-day moving average crossing. The high-range close sets the stage for a steady to higher opening on Monday. Stochastics and the RSI are turning neutral to bearish signalling that sideways to lower prices are possible near-term. If it renews this fall's decline, weekly support crossing at is the next downside target. Closes above the reaction high crossing are needed to confirm that a short-term low has been posted.

USD/JPY closed slightly higher on Friday as it extended this week's rally. The mid-range close sets the stage for a steady opening on Monday. Stochastics and the RSI are bullish but diverging hinting that a short-term top might be in or is near. If it extends this week's rally, monthly resistance 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 Friday due to short covering but remains below October's low. The mid-range close sets the stage for a steady opening on Monday. Stochastics and the RSI are neutral to bullish signalling that sideways to higher prices are possible near-term. If it extends this fall's decline, the 2001 low 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 higher on Friday and the high-range close sets the stage for a steady to higher opening on Monday. Stochastics and the RSI are overbought signalling that sideways to higher 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.

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