FOREX TRADING

EUR/USD closed higher on Thursday as it consolidates some of the decline off this month’s high. The mid-range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI are bullish signalling that a short-term low is in or is near. Closes above the 20-day moving average crossing would temper the bearish outlook. If it renews last month’s decline, the reaction low crossing is the next downside target.

USD/JPY closed lower on Thursday and the mid-range close sets the stage for a steady to lower opening on Friday. Stochastics and the RSI have turned bearish signalling that sideways to lower prices are possible near-term. Closed above Monday’s low crossing are needed to confirm that a short-term low has been posted.

GBP/USD closed lower on Thursday and the mid-range close sets the stage for a steady to lower opening on Friday. Stochastics and the RSI are oversold but remain neutral to bearish signalling that additional weakness is possible near-term. If it extends last month’s decline, the reaction low crossing is the next downside target. Closes above the 20-day moving average crossing would temper the near-term bearish outlook.

USD/CHF closed lower on Thursday as it extends this summer’s decline. Profit taking tempered early losses and the mid-range close sets the stage for a steady opening on Friday. Stochastics and the RSI remain neutral to bearish signalling that sideways to lower prices are possible near-term. If it extends this summer’s decline, the 2009 low crossing is the next downside target. Closes above the 20-day moving average crossing would confirm that a short-term low has been posted.