EURUSD Forecast

The EURUSD was volatile but indecisive yesterday. Price attempted to push lower, bottomed at 1.4013 but whipsawed to the upside and closed higher at 1.4124. The bias is neutral in nearest term. On h4 chart below we can see price is moving inside a symmetrical triangle indicates consolidation. Price is still in a bearish correction phase since the fall from 1.4939 but note that the major weekly bullish outlook also remains intact. Immediate resistance is seen at the upper line of the symmetrical triangle around 1.4200 region which is also the 50% Fibonacci retracement of 1.4577 – 1.3836. A clear break above the triangle could trigger further bullish pressure testing 1.4281 even the upper line of the daily chart descending triangle (red line).  Immediate support is seen around 1.4080 (former intraday resistance). A clear break back below that area could trigger further bearish pressure retesting 1.4000 – 1.3960 support area.  I still prefer a bearish scenario based on fragile Euro zone fundamental condition and the descending triangle on daily chart but conflicting multi time frame bias, consolidation and unclear risk – reward ratio are not my favorite intraday market condition so I prefer to stand aside for now and see further development. Unless you are a long term trader who use daily/weekly chart outlook with proper money management, I suggest you do the same.

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