Foreign Exchange Market Commentary

EUR/USD closed higher on Thursday due to short covering but remains below the 10-day moving average crossing. The mid-range close sets the stage for a steady to higher opening on Friday. 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 lower on Thursday and below the 20-day moving average crossing signalling that a short-term top has been posted. The mid-range close sets the stage for a steady to lower opening on Friday. Stochastics and the RSI are diverging and are turning neutral to bearish hinting that additional weakness is possible near-term. Closes below the reaction low crossing are needed to confirm that a short-term top has been posted.

GBP/USD closed higher on Thursday due to short covering but remains below the 10-day moving average crossing. The mid-range close sets the stage for a steady to higher opening on Friday. 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/CHF closed lower on Thursday and below the 20-day moving average crossing signalling that a short-term top has been posted. The low-range close sets the stage for a steady to lower opening on Friday. Stochastics and the RSI are diverging and are turning neutral to bearish hinting that additional weakness is possible near-term. Closes below the reaction low crossing are needed to confirm that a short-term top has been posted.

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