The euro currency capitalized on a weaker greenback and managed to erase the gains from the past two days.
The reversal came once again a few pips off the 1.1600 handle. This pushed the euro to test the 1.1715 level.
The Stochastics oscillator shows a possibility of a strong hidden bearish divergence.
This could lead to prices eventually failing to breakout above the 1.1715 level.
If this happens, the euro currency is likely to give back the gains and maintain a sideways range between the 1.1715 and 1.1600 levels.
However, an upside breakout above 1.1715 could trigger further gains opening up to 1.1800 level next.