EURUSD Forecast:

The EURUSD had a bearish momentum on mixed economy data yesterday. We had a positive numbers on US Durable Good Orders and New Home Sales but Stocks and oil dropped and Dollar got some support on weak Core Durable Goods Order. The better-than-expected Germany Ifo Business climate didn’t give much support for the Euro. The pair bottomed at 1.4205 and closed at  1.4240.

On h1 chart below we can see that the rectangle area (range area) has been violated to the downside suggesting potential bearish pressure in nearest term as the price is now testing the lower line of the bullish channel and 50% Fibo retracement of 1.4044 – 1.4375 around 1.4210 area. That area should provide a good support at this phase but a clear break below that area should lead us back into 1.4170 even 1.4050 area. Immediate resistance is seen at 1.4250/80 area. Break above that could trigger further bullish momentum towards 1.4375 area.