EURUSD (1.2271): The EURUSD extended declines for a second day as prices briefly fell to lows of 1.2250 before pulling back slightly. The retest close to the support level at 1.2243 came after price action fell strongly from the sideways range that was established at 1.2385 – 1.2300. In the near term, we expect to see a modest rebound in prices as EURUSD could potentially retrace the losses to test the breached support level of 1.2300 where resistance could be established. As long as the resistance level isn’t hit, the currency pair could be seen maintaining the new range of 1.2300 and 1.2243.
