EURUSD Forecast

The EURUSD continued its bullish momentum yesterday, topped at 1.4518 but corrected lower earlier today in Asian session and hit 1.4453. The bias is neutral in nearest term. Although my daily and weekly outlook is bullish, the CCI bearish divergence seen on h4 chart below still suggests potential bullish exhaustion and downside correction while the upside momentum seems limited. Do not rush jump into the market and let’s keep our stop losses very tight. Immediate support at 1.4400 followed by 1.4350. A clear break below 1.4350 could trigger further bearish pullback testing 1.4250 which is the upper line of the previous range. On the upside, a clear break above 1.4518 would change the intraday bias to bullish testing 1.4550 – 1.4600 area.

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