EURUSD Forecast

The EURUSD was traded lower earlier today, hit 1.4026. The bias is bearish in nearest term testing 1.4000 – 1.3960/50 support area. From a longer time frame outlook as you can see on my daily chart below, price still moves inside the bullish channel indicates the bullish scenario since the bullish run from 1.1875 remains intact but price is now in a bearish correction phase since the fall from 1.4939, testing the lower line of the bullish channel. We also have a descending triangle formation since the fall from 1.4939 so the current bearish phase also has a potential to lead price into a bearish reversal scenario especially if price able to make a clear break below the triangle, 1.3850 support area and the lower line of the bullish channel which are key supports at this phase. Immediate intraday resistance is seen at 1.4080. A clear break above that area would lead us to neutral zone in nearest term testing 1.4125 – 1.4170 intraday resistance area.

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