The EURUSD currency pair was seen making some modest gains last week as price action briefly touched the major resistance level near 1.1730.

The rally to 1.1730 came about after price action was seen bottoming out near the 1.1540 level of support over the previous two weeks.

The gains were however not as strong as expected which could mean that the common currency could be looking towards giving back some of the gains in the near term.

The common currency jumped this week at the open after the weekend news reports showed that the EU leaders had reached an agreement on the migration crisis.

The issue was threatening to break part leaders including putting at risk the feeble coalition in Germany as well.

However, following a successful summit, the euro currency managed to post some gains.

There was some resistance from the U.S. dollar as data showed that the manufacturing and non-manufacturing activity in the U.S. rebounded strongly.

The FOMC meeting minutes also showed that officials were confident about the economy and stayed on course for two more rate hikes this year.

From a technical stand point, the EURUSD is likely to ease back off the resistance level.

However, we expect that price action could remain range bound in the near term within the 1.1730 and 1.1540 levels.

A successful breakout above 1.1730 is required to keep the momentum going to the upside.

Alternately, to the downside, the currency pair is expected to remain supported above 1.1540.