EURUSD Forecast

The EURUSD made another strong bullish momentum yesterday, even stronger than what we had on Wednesday, topped at 1.3382 and closed at 1.3347 after made a strong break above 50% Fibo retracement of 1.3431 – 1.2873 around 1.3150 area. The bias remains bullish in nearest term testing 1.3500 key resistance area. However, I think it’s a good idea to see the overall situation with a broader technical view. As you can see on h4 chart below, price actually has been moving in range area so my medium term outlook remains neutral. Only a clear break above 1.3500 (right shoulder) could be an early signal of a bullish reversal scenario where the head and shoulders (H&S) bearish scenario on the daily chart would no longer valid after the failure to make a clear break below the neckline. Immediate support at 1.3270. Break below that area could lead us to neutral zone in nearest term testing 1.3150.

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