EURUSD Forecast

The EURUSD attempted to push lower yesterday, bottomed at 1.3288 but closed a little bit higher at 1.3344 and hit 1.3370 earlier today in Asian session. However price broke below the bullish channel as you can see on my hourly chart below suggest bearish continuation scenario testing 1.3211 and 1.3145. Price also keep making lower highs and lows since formed the double top formation around 1.3520/30. The bias is bearish in nearest term. Immediate resistance is seen around 1.3400/20 area. A clear break above that area could lead price to neutral zone in nearest term but any upside pullback now is normal and as long as stays below 1.3520/30 my overall intraday bearish outlook remains strong and I still prefer to short on rallies. Fundamental focus will be on the EU summit. Note that although technical bias is bearish, the EU summit could create risk appetite sentiment and push Euro higher at least in short term period.

©2011 FX Instructor Forex Blog - For Traders, By Traders. All Rights Reserved.