EURUSD Forecast

The EURUSD attempted to push lower yesterday, bottomed at 1.3836 but whipsawed to the upside and closed higher at 1.3988 in a volatile market and formed a hammer candle stick formation on daily chart. My overall technical bias remains to the downside but the appearance of the hammer as a result of some strong buying activities after touched 1.3850/36 support area can not be underestimated. The bias is neutral in nearest term. Immediate resistance is seen around 1.4050 region. A clear break above that area could trigger further upside pullback testing 1.4102/50 resistance area. Immediate support is seen around 1.3900. A clear break below that area could trigger further bearish pressure retesting 1.3850/36 support area and keep the bearish scenario remains strong testing 1.3750 this week.

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