Foreign Exchange Market Commentary

EUR/USD closed lower on Tuesday due to short covering. 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 this week's decline, the 38% retracement level of this year's rally 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/JPY closed lower on Tuesday due to short covering. 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 this week's decline, the 38% retracement level of this year's rally crossing is the next downside target. Closes above the 20-day moving average crossing would temper the near-term bearish outlook in the market.

GBP/USD closed higher on Tuesday as it consolidated yesterday's decline. The high-range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are overbought but remain bullish signalling that sideways to higher prices are possible near-term. If it extends this month's rally, the 38% retracement level of this year's decline crossing is the next upside target. Closes below the 20-day moving average crossing would temper the near-term friendly outlook in the market.

USD/CHF closed lower on Tuesday as the dollar's decline slowed. 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 this week's decline, the 38% retracement level of this year's rally crossing is the next downside target. Closes above the 20-day moving average crossing would temper the near-term bearish outlook in the market.

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