Foreign Exchange Market Commentary

EUR/USD closed lower on Tuesday while extending the trading range of the past five weeks. The mid-range close sets the stage for a steady opening on Wednesday. Stochastics and the RSI remain neutral to 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 low has been posted. If it resumes this winter's decline, the 75% retracement level of the 2008-2009-rally crossing is the next downside target.

USD/JPY closed lower due to long covering on Tuesday as it consolidated some of the rally off last week's low. The mid-range close sets the stage for a steady opening on Wednesday. Stochastics and the RSI remain bullish signalling that sideways to higher prices are possible near-term. If it extends the rally off last week's low, February's high crossing is the next upside target. Closes below last Thursday's low crossing are needed to renew the decline off January's high.

GBP/USD closed lower on Tuesday as it consolidated some of last week's rally. The mid-range close sets the stage for a steady opening on Wednesday. Stochastics and the RSI remain neutral to 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 the decline off January's high, the 75% retracement level of 2009's rally crossing is the next downside target.

USD/CHF closed higher on Tuesday and the mid-range close sets the stage for a steady opening on Wednesday. Stochastics and the RSI remain neutral to bearish hinting that a long-term high might be in or is near. Closes below the reaction low crossing are needed to confirm that a long-term high has been posted. If it resumes the rally off November's low, the 62% retracement level of the 2008-2009-decline crossing is the next upside target.

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