Foreign Exchange Market Commentary

EUR/USD closed lower on Thursday as it consolidated some of this week's rally. The low-range close sets the stage for a steady to lower 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 Tuesday's low crossing would temper the near-term friendly outlook in the market.

USD/JPY closed lower on Thursday and below the 10-day moving average crossing signalling that a short-term low has been posted. The low-range close sets the stage for a steady to lower opening on Friday. Stochastics and the RSI have turned bearish signalling that a short-term top might be near. Closes below the 20-day moving average crossing would confirm that a short-term top has been posted. If it renews this month's rally, March's high crossing is the next upside target.

GBP/USD closed higher on Thursday as it extends the rebound off last week's low. Profit taking tempered early gains and the mid-range close sets the stage for a steady opening on Friday. Stochastics and the RSI are turning bullish signalling that sideways to higher prices are possible near-term. If it extends this week's rally, this month's high crossing is the next upside target. Closes below last week's low crossing would renew the decline off April's high and could lead to a test of the reaction low crossing.

USD/CHF closed lower due to profit taking on Thursday as it consolidated some of this week's rally. The low-range close sets the stage for a steady to lower 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.

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