EURUSD (1.1650): The euro currency posted strong losses on the day after the ECB’s meeting. The declines came as the currency pair failed to clear the resistance level of 1.1730 resulting in a bearish candlestick being formed. Price action however remains trading sideways in the long term bearish trend. On the 4-hour chart, the declines look to have stalled for the momentum. A bullish follow through is required as the EURUSD could potentially be forming an inverse head and shoulders pattern. The neckline resistance is formed at 1.1742. A breakout above this level will trigger gains to 1.1824 – 1.1846 level. Alternately, a close below the previous lows at 1.1584 could however invalidate the bullish view.
