EURUSD (1.1826): The euro posted strong gains on Friday after briefly trading flat the previous two days. The currency pair managed to rally back above the 1.1800 level and thus broke above this short-term support/resistance level. The rally towards 1.1835 and the prompt pullback on the day suggests that we could see some near-term consolidation. Support is seen at 1.1730 which is likely to be the range that the EURUSD could move into. Unless the FOMC meeting minutes this week turn out to be strongly hawkish, no major new gains are expected in the EURUSD. Watch for a break out above 1.1835, in which case, we can expect further gains towards 1.1900, while to the downside a break down below 1.1730 would suggest a decline to 1.1635.
