EURUSD (1.2321): The EURUSD attempted to rally to intraday highs but price action was seen closing lower on the day off the highs. On the 4-hour chart, we see the bearish flag pattern being formed, right below the main resistance level where the EURUSD has been consolidating. A break down below the base at 1.2260 could signal further declines targeting 1.2074. Alternately, EURUSD will need to close strongly above the resistance level in order to invalidate the downside bias. However, in this scenario, we still expect to see consolidation taking place unless the EURUSD manages to post fresh highs.
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