Foreign Exchange Market Commentary

EUR/USD closed higher on Wednesday as FOMC cut interest rates by half-a-percentage point. The high-range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are overbought but remain neutral to bullish signalling that additional gains are possible near-term. If it extends this today's rally, weekly resistance crossing is the next upside target. Multiple closes below the 10-day moving average crossing are needed to confirm that a short-term top has been posted.

USD/JPY gapped down and closed lower on Wednesday due to profit taking pressure from recent strong gains. The mid-range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI are oversold but remain neutral to bearish signalling that sideways to lower prices are possible near-term. If it extends this month's decline, weekly support crossing is the next downside target. Closes above the 20-day moving average crossing are needed to confirm that a short-term low has been posted.

GBP/USD closed higher on Wednesday as FOMC cut interest rates by half-a-percentage point. The high-range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are overbought but remain neutral to bullish signalling that additional gains are possible near-term. If it extends this today's rally, weekly resistance crossing is the next upside target. Multiple closes below the 10-day moving average crossing are needed to confirm that a short-term top has been posted.

USD/CHF closed lower on Wednesday due to profit taking pressure from recent strong gains. The low-range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI are oversold but remain neutral to bearish signalling that sideways to lower prices are possible near-term. If it extends this month's decline, weekly support 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.