EURUSD Forecast

The EURUSD had a significant bullish momentum last week, topped at 1.4436 but traded lower earlier today in Asian session hit 1.4341. The bias is neutral in nearest term. As you can see on my hourly chart below, price is still in a bullish phase since the bullish momentum from 1.3836. Key intraday support is seen around 1.4281 (former resistance), which is the area of 38.2% Fibobacci retracement of 1.3836 – 1.4436 and the trend line support (white). However, there is a double top formation at 1.4436 which could create a downside correction testing 1.4281 and the trend line support area and we need a clear break above 1.4436 to continue the bullish outlook at least testing 1.4480 – 1.4500 resistance area.  On the downside, a clear break below 1.4281 and the trend line support could be a threat to the current bullish intraday outlook testing 1.4100 – 1.4000 as another false breakout from my descending triangle (daily chart) could trigger another significant bearish pullback.

©2011 FX Instructor Forex Blog - For Traders, By Traders. All Rights Reserved.

.