EURUSD Forecast

The EURUSD made a false breakout yesterday, topped at 1.3273 but whipsawed to the downside, closed at 1.3108 and hit 1.3083 earlier today in Asian session. This false breakout gives us a technical clue that Euro could have more downside pressure. On daily chart below, I made a new alternative trend line support (white) to show that critical support area around 1.3000 – 1.2900 is being tested now. This support area could still hold for the remaining days of 2010 and long counter trend intra-day position anticipating bullish correction/consolidation does make sense technically, but for me it is clear that the bias is more to the downside and I still prefer a bearish scenario. Immediate resistance at 1.3170 – 1.3200. Break above that area could trigger further upside consolidation testing 1.3300 resistance area but false breakouts remain highly potential.

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