EURUSD (1.1804): The euro maintained the gains yesterday as price action was seen rising to the initial resistance level of 1.1822 by the day’s close. Currently, EURUSD is seen declining off this resistance level, although further near-term upside could see price testing 1.1850. The rally to the resistance level marks the upside move and could see a near term pullback. A retest back to the breakout level from the descending wedge pattern is the main risk. However, a pullback could likely trigger a potential inverse head and shoulders pattern in the making. This would put EURUSD on a bullish track towards the minimum 1.1902 and potentially up to 22 September’s unfilled gap near 1.1948. In the event of a decline below 1.1720, it would invalidate this still nascent inverse head and shoulders pattern.
