The euro currency touched down to lows near 1.1785 last week, but prices were rejected twice at this level.
This pushed the common currency to close somewhat higher. Still, the bearish outlook remains.
We expect prices to now remain trading flat above the 1.1785 level heading into this Thursday’s ECB meeting.
It could be a make or break meeting as a bullish reaction from the markets would propel the euro to trade above 1.2000.
Alternately, a close below 1.1800 could mean that a much-needed correction could be on the way.