EURUSD Forecast

The EURUSD slipped above 1.3500 yesterday, topped at 1.3537 but closed lower at 1.3455. The bias is neutral in nearest term. Overall we are still in short term bullish phase and in critical point of medium term outlook where a consistent move above 1.3500 would be a beginning of a technical bullish reversal outlook at least testing 1.3800, but so far, that bullish scenario is not confirmed yet and seems like there are some forces in the market who still interested in selling the Euro around 1.3500 region especially those who are still pessimistic about Euro fundamental condition. Now let’s take another look on the downside. The fact that price still unable to stay above 1.3500 so far, could create potential false breakout scenario and keep us in a range market of 1.3500 – 1.2950/00 area in medium term outlook. On h4 chart below, we have a rising wedge formation and CCI bearish divergence, both give a potential technical bearish view especially if price break below 1.3370 support area, open the door for further bearish pullback testing 1.3250.

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