EURUSD (1.1645): The EURUSD maintained its bullish gains yesterday marking a second consecutive day of gains. Price action rallied to a four-day high yesterday but remained well below the 1.1674 resistance level. The bearish flag pattern breakout level is being retested, but the strong bounce off the previous low suggests that the bearish pattern might be weakening. On the 4-hour chart, however, we see some bearish signs with the Stochastics oscillator posting a hidden bearish divergence. This could possibly suggest another leg to the downside if EURUSD posts a reversal at the current levels. Overall, the ranging price action between 1.1688 – 1.1574 is most likely to be maintained.
