EURUSD (1.1863): The euro stalled its two day decline yesterday, as price action closed with a spinning bottom candlestick pattern. Current attempts to minimise losses could see a short term rebound in price action to the upside. The reversal comes as EURUSD was seen testing the support area near 1.1843 – 1.1822. This could mean a short-term retracement towards 1.1920 where a short-term support was formed. Establishing resistance here could signal further declines. While the support area of 1.1842 – 1.1822 remains, the initial downside target a break down below this level will send EURUSD lower to testing the support area around 1.1710 – 1.1688. The bearish bias will shift if price manages to close above 1.1920.
