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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 50% retracement level of the 2010-2011-rally crossing. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are neutral to bearish signalling that sideways to lower prices are possible near-term. If it extends the aforementioned decline, the 62% retracement level of the 2010-2011-rally crossing is the next downside target. Closes above the 20-day moving average crossing are needed to confirm that a short-term low has been posted.