EURUSD (1.1836): The EURUSD rallied to close at a five day high yesterday following the FOMC meeting. The reversal near the 1.1730 level of support could potentially point to a head and shoulders pattern that is currently forming. If we expect to see a reversal resulting in the right shoulder, then we can expect further declines in EURUSD on a break down below 1.1730 neckline support. On the 4-hour chart, price action has hit the resistance level area of 1.1843 – 1.1822. Further gains can be expected only on a close above this level.
