EURUSD (1.1909): The EURUSD was volatile yesterday as price action initially slipped to a 6-day low before recovering. The declines came as the flash inflation estimates came out lower than forecasts for the Eurozone. The EURUSD formed an inside bar on the daily session which could now see a potential breakout from the ranging price action. On the 4-hour chart, price action briefly tested the resistance level at 1.1920 as expected. We expect to see the euro maintaining a sideways range within 1.1920 resistance and 1.1822 support region in the short term. A breakout from this range will potentially establish further direction in the currency pair. The risk is however to the downside as the common currency could fall towards the lower support at 1.1710 on a downside breakout.
