EURUSD Forecast

The EURUSD was volatile but indecisive yesterday, made a Doji on daily chart. The bias is neutral in nearest term but overall we are still in short term bullish phase as price still keep on pushing higher struggling around 1.3500.  However, note that some players also might still be interested in selling around 1.3500. Intra-day traders should pay attention to 1.3537 and 1.3370 levels as price has been moving in that range in the last three days and need a clear break on either side to see clearer technical direction. Aggressive traders may short around 1.3500 or long around 1.3370 with tight stop loss. There are no changes in my medium term outlook where a consistent move above 1.3500 would be a confirmation of a new bullish phase at least testing 1.3800. On the downside, the rising wedge formation and CCI bearish divergence still provide potential bearish pullback scenario especially if price makes a clear break below the rising wedge and 1.3370 support area testing 1.3250. I will stand aside for now and see further development as price is now in critical phase with high volatility without clear direction and consistent momentum. Doing nothing and trying to enjoy my weekend and hope to see things clearer next week.

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