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EUR/USD closed higher due to short covering on Monday as it consolidates some of last week's decline but remains below the 10-day moving average crossing. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI have turned bearish signalling that sideways to lower prices are possible near-term. Closes below the 20-day moving average crossing would confirm that a short-term top has been posted. If it renews the rally off January's low, the 75% retracement level of the November-January decline crossing is the next upside target.