The euro currency is trading with some modest losses on Wednesday. The declines come after price action made a rebound just a few pips above the 1.2050 technical support.
This rebound pushed prices to test their technical resistance level near 1.2144. Following this small rally, price action reversed gains.
At the moment, prices remain stuck within the 1.2144 resistance and 1.2050 support. With the stochastics oscillator moving out from the overbought levels, we expect to see a retest back to the 1.2050 level, a bit more firmly.
If the euro currency loses the support near 1.2050, then we expect a gradual decline towards the 1.1900 level next.
To the upside, a close above the 1.2177 – 1.2144 level, will open the way to further gains.