EURUSD Daily Forecast: February 12

 @ibtimes on February 11 2010 10:39 PM

EURUSD Forecast:

The EURUSD touched 1.3595 level yesterday as Brussels summit failed to give a detail plan of the rescue package for Greek but closed significantly higher at 1.3692. Although market seemed disappointed with the absence of the detail, the fact that Euro bounced to the upside may indicate that traders still expect a convincing rescue plan. The situation can be very tricky at this phase. Unless EU come up with satisfying detail, Euro should keep under heavy pressure.

Technically speaking, as you can see on my h4 chart below, the bullish channel has been violated to the downside indicating potential end to the bullish correction but found a strong support around 1.3585 area (double bottom). The bias is neutral in nearest term but overall I still prefer a bearish scenario. Break below 1.3585 should trigger further bearish momentum towards 1.3490 – 1.3400 area. On the upside, immediate resistance is seen around 1.3750 – 1.3800 area.

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