FOREIGN EXCHANGE

EUR/USD closed lower due to profit taking on Tuesday as it consolidates some of the rally off June's low. The low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are overbought but remain neutral to bullish signalling that sideways to higher prices are possible near-term. If it extends the aforementioned rally, the 38% retracement level of the 2009-2010-decline crossing is the next upside target.