EURUSD (1.1916): The EURUSD was seen closing with strong gains yesterday as price action rallied back to the breached support level of 1.1920. However, the 4-hour Stochastics is showing a hidden bearish divergence which could signal that price action could soon resume the declines again. If the EURUSD posts a higher low, we could expect to see a bottom being formed. Price action will need to clear the support turned resistance level of 1.1960 – 1.1920 in order to post a correction. The long term upside resistance can be seen at 1.2200 in this case. To the downside, failure to clear the resistance could keep the EURUSD maintaining the range within the resistance level and the lower support at 1.1730.
