EURUSD (1.1657): The consolidation in the EURUSD continues as price action remains trading flat below 1.1672. The euro was seen posting modest gains, but did not manage to make any significant progress. With price trading below the main resistance level of 1.1704 and 1.1672 we expect the bias to remain to the downside. On the 4-hour chart, the bearish flag pattern remains the main point of focus. Price action is expected to break down to the downside and will be validated on a close below the previous low of 1.1573. This will open the downside target in EURUSD towards 1.1411 eventually marking the completion of the bearish flag pattern. To the upside, a breakout above 1.1704 – 1.1672 could however signal a shift in the short-term direction.
