EURUSD (1.1967): The EURUSD posted sharp declines yesterday as price action was seen testing the support level at 1.1950 level, touching a 5-day low. The declines came on a stronger U.S. dollar and amid concerns that the strong appreciation in the common currency could spur ECB officials to talk down the currency ahead of this month’s monetary policy meeting. Technically, EURUSD could be seen posting a rebound off 1.1950, however further declines cannot be ruled out to 1.1900. A retest of support at 1.1900 could potentially complete the correction. In the near term, any rebound will be limited to the 1.2000 handle which previously served as minor support.
