Foreign Exchange Market Commentary

EUR/USD closed lower due to profit taking on Tuesday while extending last week's trading range above the 20-day moving average crossing. The low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI remain neutral to bullish signalling that sideways to higher prices are possible near-term. If it extends the rally off this month's low, June's high crossing is the next upside target.

USD/JPY closed higher due to short covering on Tuesday but remains below the 20-day moving average. The mid-range close sets the stage for a steady opening on Wednesday. Stochastics and the RSI remain bearish signalling that sideway to lower prices are possible near-term. If it extends Monday's decline, the reaction low crossing is the next downside target. Closes above the 10-day moving average crossing are needed to confirm that a short-term low has been posted.

GBP/USD closed lower on Tuesday as it continues to consolidate above the 20-day moving average crossing. The low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are neutral to bearish hinting that a short-term top might be in or is near. Closes below the reaction low crossing would temper the near-term friendly outlook. If it extends this month's rally, June's high crossing is the next upside target.

USD/CHF closed lower on Tuesday while extending this summer's trading range. A short covering rally tempered early losses and the mid-range close sets the stage for a steady opening on Wednesday. Stochastics and the RSI have turned bearish hinting that a short-term top might be in or is near. Closes below the 20-day moving average crossing would temper the near-term friendly outlook in the market. If it extends the rally off June's low, trading range resistance crossing is the next upside target.