EURUSD Forecast

The EURUSD failed to continue its bullish momentum yesterday, bottomed at 1.2445 and closed at 1.2476. Once again, bailout news from the Eurozone failed to boost the Euro and only created short-lived bullish momentum. From a technical perspective, we have a false breakout above 1.2641 which could continue the major bearish scenario. The bias is bearish in nearest term testing 1.2400 before retesting 1.2287. Immediate resistance is seen around 1.2550/65. A clear break above that area could lead price to neutral zone in nearest term as direction would become unclear but as long as stays below 1.2641 I still prefer a bearish scenario with sell on rallies strategy.

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