The euro currency is posting a strong retracement following the decline close to the 1.2050 level of technical support.
The current rebound has pushed price action to test a minor support level near 1.2144. With the stochastics oscillator currently showing a hidden bearish divergence, price action will either have to break out above 1.2177 resistance or it is likely that we could see a continuation to the downside.
This could mean that the technical support near 1.2050 will once again come under pressure. If prices break below this level, then the EURUSD could be looking towards posting their correction down to 1.1900 level.
To the upside, price action will need to post or strong gain about 1.2177 in order to keep the upside bias intact.
