The euro currency is giving back the gains made from Wednesday as price action failed to rise above the technical resistance level near 1.2144.
As a result, price action is quite bearish, amid the hidden bearish divergence as well. However, given the fact that price action has broken out from the falling price channel, this decline could merely be a retracement to the breakout level.
We could see EURUSD retest the breakout level near 1.2080 to the downside. Below this level, the lower support area near 1.2050 is also likely to hold the declines.
In the near term, we could expect the EURUSD to move in a sideways range between 1.2144 and 1.2080 levels.
