Foreign Exchange Market Commentary

EUR/USD closed higher on Tuesday as it consolidates above the 10-day moving average crossing. The mid-range close sets the stage for a steady opening on Tuesday. Stochastics and the RSI are diverging but are turning bullish signalling that additional short-term gains are possible. If it extends the rally off June's low, the 38% retracement level of the 2009-2010-decline crossing is the next upside target. Closes below the 20-day moving average crossing are needed to confirm that a short-term top has been posted.