EUR/USD closed sharply higher due to short covering on Wednesday as it consolidates some of last week's decline. The high-range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are oversold and are turning bullish signalling that sideways to higher prices are possible near-term. Closes above the 20-day moving average crossing would confirm that a short-term low has been posted. If it renews last week's decline, the 62% retracement level of 2010's rally crossing is the next downside target.