EUR/USD closed higher due to short covering on Tuesday as it consolidated some of last week's decline. The high-range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are oversold but are turning neutral to bullish hinting that a low might be in or is near. Closes above the 20-day moving average crossing are needed to confirm that a short-term low has been posted. If it extends this winter's decline, the 62% retracement level of the 2008-2009-rally crossing is the next downside target.
Join the Discussion