EURUSD Forecast

The EURUSD made another indecisive movement yesterday. We are still in bullish outlook targeting 1.3800 this week and overall price still making higher lows and highs in the last three days, but I think the bullish momentum could be exhausted with potential bearish correction due to diminishing bullish power and potential bearish view indicated by CCI bearish divergence as you can see on my h4 chart below.  Bullish continuation scenario would have further validation by a clear move above 1.3800 targeting 1.4000 even higher.  I think it’s a good idea for intraday traders to stop buying the Euro at the current level (around 1.3700) and wait for further development due to a bad risk reward ratio. I am expecting some minor bearish pullback near 1.3625 – 1.3550 support area to go long as my risk-reward ratio looks better there.  So my decision not to keep buying the Euro at current level is not because I think the bullish phase is over (I don’t see a good reason to short the pair either) but because I want a better risk-reward ratio.

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