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Monday, October 15, 2012

$EURUSD

$EURUSD closed higher on Friday as it consolidates some of this week's decline. The mid-range close sets the stage for a steady opening on Monday. 

Stochastics and the RSI are neutral to bullish signaling that sideways to higher prices are possible near-term. If December renews the rally off July's low, the 50% retracement level of this year's decline crossing at 132.52 is the next upside target. If December renews the decline off September's high, the reaction low crossing at 125.20 is the next downside target. 

First resistance is September's high crossing at 131.83. 
Second resistance is the 50% retracement level of this year's decline crossing at 132.52. 

First support is the reaction low crossing at 128.13. 
Second support is the reaction low crossing at 125.20.