EURUSD (1.1653): Price action in the EURUSD was rather muted following last Thursday’s sharp declines. With the euro clearing the support level at 1.1700 – 1.1672, we now expect the declines to continues. The daily chart shows the validation of the head and shoulders pattern as we expect EURUSD to decline towards the minimum target level of 1.1440. The muted price action currently is also showing signs of a temporary consolidation following which we can expect to see strong declines being resumed. There is a short-term potential for the EURUSD to briefly retest the 1.1672 – 1.1674 level where resistance could be established. However, watch the bearish flag pattern that indicates potential downside.
