Foreign Exchange Market Commentary

EUR/USD closed higher on Tuesday as it consolidates some of the decline off last week's high. The high-range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are bearish signalling that sideways to lower prices are possible near-term. If it renews this fall's decline, weekly support 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/JPY closed higher on Tuesday as it consolidates some of the decline off last week's high. The mid-range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are bearish signalling that sideways to lower prices are possible near-term. If it renews this fall's decline, weekly support crossing is the next downside target. Closes above the reaction high crossing are needed to confirm that a short-term low has been posted.

GBP/USD closed higher on Tuesday as it consolidates some of the decline off last week's high. The mid-range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are bearish signalling that sideways to lower prices are possible near-term. If it renews this fall's decline, weekly support 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 Tuesday as it consolidates some of the decline off last week's high. The high-range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are bearish signalling that sideways to lower prices are possible near-term. If it renews this fall's decline, weekly support crossing is the next downside target. Closes above the reaction high crossing are needed to confirm that a short-term low has been posted.

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