Foreign Exchange Market Commentary

EUR/USD closed lower on Tuesday and below the 20-day moving average crossing confirming that a short-term top has been posted. The low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI remain bearish signalling that sideways to lower prices are possible near-term. If it extends today's decline, broken resistance 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 closed higher on Tuesday and above the 10-day moving average crossing signalling that a short-term low has likely been posted. The high-range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are oversold but remain neutral to bearish signalling that sideways prices are possible near- term. If it extends last week's decline, monthly support crossing is the next downside target.. Closes above the reaction high crossing are needed to confirm that a trend change has taken place.

GBP/USD closed higher on Tuesday and above the 10-day moving average crossing signalling that a short-term low has likely been posted. The high-range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are oversold but remain neutral to bearish signalling that sideways prices are possible near- term. If it extends last week's decline, monthly support crossing is the next downside target. Closes above the 20-day moving average crossing would temper the near-term bearish outlook in the market.

USD/CHF closed higher on Tuesday and above the 10-day moving average crossing signalling that a short-term low has likely been posted. The high-range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are oversold but remain neutral to bearish signalling that sideways prices are possible near- term. If it extends last week's decline, monthly support crossing is the next downside target. Closes above the reaction high crossing are needed to confirm that a trend change has taken place.

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