The EURUSD was corrected higher yesterday after failed to make a clear break below 1.2884, topped at 1.2963, hit 1.2988 and traded around 1.2940 at the time I wrote this comment in a volatile Asian session. The bias is neutral in nearest term and like I said, any upside correction after strong bearish momentum last week is normal but we are still in major bearish outlook and I still prefer a bearish scenario at this phase. Price is now consolidating, struggling around the neckline of the H&S pattern and I have to wait a little bit longer before my bearish scenario confirmed by a clear break below the neckline and consistent move below 1.2900 key support area, still targeting 1.2700 – 1.2600 this week. Immediate resistance at 1.3020. Break above that area could trigger further upside correction testing 1.3100 – 1.3150 resistance area and would lead us back to range market condition but only a move above 1.3500 would be a threat to the bearish scenario. For those who are relatively new to forex trading, this is the time to learn about how patient, proper money management and cut losses play very important role in protecting our capital and sometimes doing nothing is the best thing we can do, especially in critical phase and consolidation condition. Immediate support at 1.2900 – 1.2870 area. Clear break below that area would activate my bearish mode testing 1.2820/00 in nearest term.
©2011 FX Instructor Forex Blog - For Traders, By Traders. All Rights Reserved.