EURUSD Forecast

The EURUSD attempted to push higher yesterday after agreement on second EU/IMF bailout package for Greek reached, topped at 1.3292 but the bullish run was short lived, slipped back below 1.3200 and closed at 1.3247 in a volatile market. Judging from the market reaction after the bailout, there was only little optimism regarding Euro zone debt problem. There are no changes in my technical outlook. Price is still in a bullish phase since bounced from 1.2625 but need a clear break and daily close at least above 1.3320 to continue the bullish scenario. Immediate support is seen around 1.3150. A clear break below that area could trigger further bearish pressure testing 1.3100 but only a clear break and daily close below 1.3000 – 1.2970 could cancel the bullish phase and activate my intraday bearish mode. Immediate resistance is seen around 1.3275. A clear break above that area could trigger further bullish pressure testing 1.3300/85 region. Note that overall price is still in consolidation phase, moving sideways/indecisively since two/three weeks ago and made a lot of false short term breakout/breakdown. I still prefer to stand aside for now and see further development.

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