Foreign Exchange Market Commentary

EUR/USD closed lower on Wednesday as it extends this month's decline. The low-range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI are oversold but remain neutral to bearish signalling that sideways to lower prices are possible near-term. If its extends this month's decline, October's low 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.

USD/JPY closed higher on Wednesday as it extends this week's rally. The high-range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are bullish signalling that sideways to higher prices are possible near-term. If its extends the rally off November's low, October's high crossing is the next upside target. If its renews last week's decline, November's low crossing is the next downside target.

GBP/USD closed higher due to short covering on Wednesday as it consolidated some of Tuesday's decline. The mid-range close sets the stage for a steady opening on Thursday. Stochastics and the RSI are oversold but remain neutral to bearish signalling that sideways to lower prices are possible near-term. If its extends last week's decline, the October 15th gap crossing is the next downside target. Closes above the 20-day moving average crossing would confirm that a short-term low has been posted.

USD/CHF closed slightly lower due to short covering on Wednesday as it consolidates some of Tuesday's rally. The mid-range close sets the stage for a steady opening on Thursday. Stochastics and the RSI are oversold but remain neutral to bullish signalling that sideways to higher prices are possible near-term. If its extends this month's rally, the reaction high crossing is the next upside target. Closes below the 20-day moving average crossing would confirm that a short-term high has been posted.

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