The EURUSD had a significant bullish momentum yesterday, break above 1.3750, topped at 1.3838 and closed at 1.3795. Technically, the bullish correction scenario indicated the hammer candlestick formation is now confirmed targeting at least 1.3850 before testing 1.4030 area. The bias is bullish in nearest term but note that longer term bearish scenario remains intact as long as price still move inside the bearish channel. Another movement back below 1.3750 today could be a threat to the bullish correction scenario testing 1.3650 – 1.3585 support area.
On fundamental side, Euro rally against the Dollar was trigger by hope that Greece will get some help from the EU as rescue package is being prepared. However, how long will this positive sentiment support the Euro is not easy to measure. Another negative news on Greece or the Euro zone could bring the Euro down again, back to its bearish scenario, which is remains intact in longer term outlook.