EURUSD (1.1966): The EURUSD managed to post some modest gains yesterday as price action was seen recovering back to 1.1954. On the 4-hour chart, we see a potential inverse head and shoulders pattern that is evolving with the neckline resistance seen forming at 1.1976. With the right shoulder now formed, we expect EURUSD to rally back to 1.2060 at the minimum on a successful upside breakout from this pattern. Alternately, failure to break out above 1.1976 will put EURUSD in a sideways range which could keep the currency pair range supported above 1.1882. A breakdown below this support level will keep EURUSD biased to the downside targeting 1.1688.
