Foreign Exchange Market Commentary

GBP/USD closed higher due to short covering on Thursday as it consolidated some of Monday's decline but remains below the 10-day moving average crossing. 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 renews this week's decline, the reaction low crossing then, July's low crossing are the next downside targets. Closes above the 10-day moving average crossing would temper the near-term bearish outlook in the market.

USD/CHF closed higher on Thursday as it extended the short covering rally off last Friday's low. The high-range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI have turned bullish signalling that sideways to higher prices are possible near-term. Closes above the 20-day moving average crossing are needed to confirm that a short-term low has been posted. If it renews the decline off July's high, June's low crossing is the next downside target.

EUR/USD closed higher due to short covering on Thursday as it consolidated some of its recent decline. The mid- range close sets the stage for a steady opening on Friday. Stochastics and the RSI are turning neutral to bullish hinting that a short-term low might be in or is near. Closes above the 10-day moving average crossing would temper the near-term bearish outlook in the market. If it renews this month's decline, the reaction low crossing is the next downside target.

USD/JPY closed higher on Thursday as it extended the short covering rally off last Friday's low. The high-range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI have turned bullish signalling that sideways to higher prices are possible near-term. Closes above the 20-day moving average crossing are needed to confirm that a short-term low has been posted. If it renews the decline off July's high, June's low crossing is the next downside target.