FOREX TRADING

EUR/USD closed higher due to short covering on Wednesday as it consolidated some of this year’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 it extends this year’s decline, monthly support 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 lower due to short covering on Wednesday as it extends this week’s decline. The low-range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI are turning bearish signalling that sideways to lower prices are possible near-term. If it renews last week’s rally, the reaction high crossing is the next upside target.

GBP/USD closed higher due to short covering on Wednesday as it consolidated some of this week’s decline. The mid-range close sets the stage for a steady opening on Thursday. Stochastics and the RSI are neutral to bearish signalling that sideways to lower prices are possible near-term. If it extends this week’s decline, May’s low crossing is the next downside target. Closes above the reaction high crossing are needed to confirm that a low has been posted.

USD/CHF closed lower on Wednesday as it extends the trading range of the past three weeks. The mid-range close sets the stage for a steady opening on Thursday. Stochastics and the RSI are bearish signalling that a short-term high might be in or is near. Closes below the reaction low crossing are needed to confirm that a short-term high has been posted. If it resumes this spring’s rally, weekly support crossing is the next upside target.