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Thursday, December 20, 2012

$EURUSD Morning Commentary

EURUSD closed higher on Wednesday as it extends the rally off November's low. Profit taking tempered early gains and the low-range close sets the stage for a steady to lower opening on Thursday. 

Stochastics and the RSI are overbought, diverging but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If March extends this week's trading range breakout, weekly resistance crossing at 1.3391 is the next upside target. Closes below the 20-day moving average crossing at 1.3044 would confirm that a short-term top has been posted. 

First resistance is today's high crossing at 1.3321. 
Second resistance is weekly resistance crossing at 1.3287. 

First support is the 10-day moving average crossing at 1.3090. 
Second support is the 20-day moving average crossing at 1.3044.