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Saturday, February 2, 2013

$EURUSD

EURUSD closed higher on Friday extending this winter's rally. The mid-range close sets the stage for a steady to higher opening on Monday.

Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If March extends this month's rally, weekly resistance crossing at 138.31 is the next upside target. Closes below the 20-day moving average crossing at 133.46 would confirm that a short-term top has been posted. 

First resistance is today's high crossing at 137.15. 
Second resistance is weekly resistance crossing at 138.31. 

First support is the 10-day moving average crossing at 134.58.
Second support is the 20-day moving average crossing at 133.46.