Foreign Exchange Market Commentary

EUR/USD closed lower on Wednesday and the mid-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 it extends the rally off last week’s low, the reaction high crossing is the next upside target. If it resumes this year’s decline, monthly support crossing is the next downside target.

USD/JPY closed slightly higher on Wednesday and the mid-range close sets the stage for a steady opening on Thursday. Stochastics and the RSI remain neutral signalling that sideways trading is possible near-term. If it renews last week’s decline, the reaction low crossing is the next downside target. If it renews the rally off the late-May low, the reaction high crossing is the next upside target.

GBP/USD closed lower on Wednesday as it consolidates some of the rally off May’s low. The mid-range close sets the stage for a steady opening on Thursday. Stochastics and the RSI are bullish signalling that sideways to higher prices are possible near-term. If it extends this month’s rally, the reaction high crossing is the next upside target. Closes below the reaction low crossing would confirm that a short-term top has been posted.

USD/CHF closed lower on Wednesday and and the mid-range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI remain bearish signalling that sideways to lower prices are possible near-term. If it extends today’s decline, the reaction low crossing is the next downside target. Closes below the 10-day moving average crossing would temper the friendly outlook.