EURUSD (1.1877): The EURUSD extended the declines yesterday with price action falling to test the first support level at 1.1882. Further declines could see the common currency falling to the next main resistance level at 1.1825. A rebound off either of these two levels is quite possible which could see some near-term upside in prices. However, watch for a lower high being formed as a result of this bounce which could signal the start of the correction towards 1.1688. Resistance can be seen forming around 1.1963 which could see a near term reversal. EURUSD could potentially stay range bound within these levels following which a breakout trade might occur. To the upside, above 1.1963, further gains could push EURUSD past the 1.20 handle, while to the downside we expect a test of 1.1688.
