Foreign Exchange Market Commentary

EUR/USD closed higher on Wednesday and the low-range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI are turning bullish hinting that a short-term low might be in or is near.

Closes above the 20-day moving average crossing are needed to confirm that a short-term low has been posted. If it resumes this winter's decline, the 62% retracement level of the 2008-2009-rally crossing is the next downside target.

USD/JPY closed higher on Wednesday as it extends last 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. Closes above the reaction high crossing are needed to confirm that a short-term bottom has been posted. Closes below the 10-day moving average crossing would signal that a short-term high has been posted.

GBP/USD closed higher on Wednesday and and the low-range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI are turning bullish hinting that additional short covering is possible. Closes above the 20-day moving average crossing are needed to confirm that a short-term low has been posted. If it extends the decline off January's high, the 50% retracement level of 2009's rally crossing is the next downside target.

USD/CHF closed slightly lower on Wednesday and the high-range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are turning neutral to bearish hinting that a short-term high might be in or is near. Closes below the 20-day moving average crossing are needed to confirm that a short-term high has been posted. If it extends the rally off November's low, the 50% retracement level of the 2008-2009-decline crossing is the next upside target.