The EURUSD made a strong bullish correction yesterday, topped at 1.3143 which is around 50% Fibo retracement of 1.3431 – 1.2873. On h4 chart below we have two convincing bullish candles indicate a strong bullish pressure. The bias remains bullish in nearest term especially if price able to make another strong break above 1.3150 targeting 1.3250. Immediate support at 1.3060. Break below that area could lead us to neutral zone in nearest term testing 1.3000. Although from broader outlook the current bullish momentum is still a counter trend move and only a move above 1.3500 could be a signal of a bullish reversal scenario, the strong bullish correction in the last three days suggests that it’s not the time to short the pair. We can wait patiently and do nothing due to conflicting multi time frames technical bias or aggressive intra-day traders can keep on buying the Euro taking advantage of short term strong bullish bias with very tight stop loss because major bearish wave could come back anytime as Euro zone fundamental condition still in negative outlook.
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