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EUR/USD closed sharply higher due to short covering on Friday as it consolidated some of yesterday's decline. Today's close above the 20-day moving average crossing and the high-range close sets the stage for a steady to higher opening on Monday. Stochastics and the RSI remain neutral to bearish signalling that additional weakness is possible near-term. If it extends Thursday's decline, July's low crossing is the next downside target. Closes above last Wednesday's high crossing are needed to renew the rally off last month's low.