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Saturday, February 16, 2013

$EURUSD

EURUSD closed higher due to short covering on Friday as it consolidates some of this month's decline. The high-range close sets the stage for a steady to higher opening.  

Stochastics and the RSI remain neutral to bearish signaling that sideways to lower prices are possible near-term. If March extends this month's decline, the November-January uptrend line crossing near 132.79 is the next downside target. Closes below the 20-day moving average crossing at 134.50 would temper the near-term bearish outlook.

First resistance is the 20-day moving average crossing at 134.50. 
Second resistance is this month's high crossing at 137.15. 

First support is today's low crossing at 133.08. 
Second support is the November-January uptrend line crossing near 132.79.