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Tuesday, December 18, 2012

$EURUSD Evening Commentary

EURUSD closed higher on Tuesday as it extends the rally off November's low. The high-range close sets the stage for a steady to higher opening on Wednesday. 

Stochastics and the RSI are diverging but are bullish signaling that sideways to higher prices are possible near-term. Multiple closes above September's high crossing at 1.3188 would confirm an upside breakout of a three and a half month trading range. Closes below the 20-day moving average crossing at 1.3023 would confirm that a short-term top has been posted. 

First resistance is today's high crossing at 1.3252. 
Second resistance is weekly resistance crossing at 1.3287. 

First support is the 10-day moving average crossing at 1.3073. 
Second support is the 20-day moving average crossing at 1.3023.