EURUSD (1.1681): The EURUSD currency pair managed to post gains for the second day but price action was mostly subdued. The early trading on Friday showed some bearish momentum in price action which indicates perhaps a moderate pullback to the gains from the previous two days. On the 4-hour chart, the recent gains coincide with the upper end of the falling price channel alongside the hidden bearish divergence. Unless the EURUSD clears the resistance level at 1.1730, we expect to see a pullback in price. Support is most likely to be established around 1.1610 – 1.1577. If price rebounds along this level, we could expect to see further gains in store.
