Foreign Exchange Market Commentary

EUR/USD closed lower on Thursday as it extended Wednesday's decline. The mid-range close sets the stage for a steady opening on Friday. Stochastics and the RSI are diverging and are turning neutral to bullish signalling that a low is in or is near. Closes above the 20-day moving average crossing are needed to confirm that a short-term low has been posted. If it extends this year's decline, fib support crossing is the next downside target.

USD/JPY closed higher on Thursday as it extends this week's short covering rally. The mid-range close sets the stage for a steady opening on Friday. Stochastics and the RSI are neutral to bullish signalling that sideways to higher prices are possible near-term. Thursday's close above the 20-day moving average crossing has tempered the near-term bearish outlook. If it renews Monday's decline, January's low crossing is the next downside target.

GBP/USD closed higher on Thursday as it extended Wednesday's breakout above the 20-day moving average crossing. The high-range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI remain bullish signalling 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 are needed to confirm that short-term top has been posted.

USD/CHF closed higher on Thursday as it extends this week's short covering rally. The mid-range close sets the stage for a steady opening on Friday. Stochastics and the RSI are neutral to bullish signalling that sideways to higher prices are possible near-term. Thursday's close above the 20-day moving average crossing has tempered the near-term bearish outlook. If it renews Monday's decline, January's low crossing is the next downside target.

HY Markets
http://www.hymarkets.com