EURUSD Forecast

The EURUSD was corrected higher last week as Dollar was broadly lower in the last week of 2010.  My medium outlook remains neutral as price still moves in range area of 1.2968 – 1.3497 as you can on my daily chart below. I still prefer a bearish scenario, but if price makes a clear break above 1.3497 this week, I have no technical reason to maintain my bearish outlook with 1.3600 – 1.3750 resistance area to be tested. Earlier today in Asian session, the pair was traded lower, hit 1.3276 after peaked at 1.3423 on Friday. The bias is bearish in nearest term especially if price make further downside break below 1.3270 testing 1.3200 – 1.3170 support area. Immediate resistance at 1.3323. Break above that area could lead us to neutral zone in nearest term, but would give another chance for further upside pressure testing 1.3497 key resistance area. On the downside, bearish continuation scenario would have further validation on a clear break below the trend line support.

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