Foreign Exchange Market Commentary

EUR/USD closed higher on Tuesday as it extends this month's rally. The high-range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are bullish hinting that sideways to higher prices are possible near- term. If it extends today's rally's, the 50% retracement level of the July-October decline crossing is the next upside target. Closes below the 20-day moving average crossing are needed to confirm that a short-term low has been posted.

USD/JPY closed lower on Tuesday as it extends last week's decline. The low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are bearish hinting that sideways to lower prices are possible near-term. If it extends this month's decline, the 50% retracement level 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.

GBP/USD closed higher on Tuesday and the high-range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are bullish hinting that sideways to higher prices are possible near-term. If it extends this week's rally, the reaction high crossing is the next upside target. Closes below the 10-day moving average crossing would temper the near-term friendly outlook in the market.

USD/CHF closed lower on Tuesday as it extends last week's decline. The low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are bearish hinting that sideways to lower prices are possible near-term. If it extends this month's decline, the 50% retracement level 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.

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