EURUSD (1.1770): The EURUSD extended the declines yesterday on a strong US dollar. However, the declines now see price retesting the breakout level of the descending wedge pattern. This could suggest some near term gains on the horizon. The Stochastics is also oversold and could signal a near term bounce. Any gains in price will be limited to the resistance level which has been established at 1.1822. Support is seen at 1.1720. The EURUSD is expected to maintain trading within the range into next week’s ECB meeting. However if support at 1.1720 breaks, then EURUSD could post further declines towards 1.1704 – 1.1672 where the major neckline support exists.
