EURUSD Forecast

The EURUSD had a bullish momentum on Friday, closed at 1.4311 but traded lower and hit 1.4216 earlier today in Asian session. We have a bullish reversal warning indicated by the inverse H&S formation as I mentioned in my weekly summary after the rejection to move below 1.4000 strong support area, but price unable to make a clear break above 1.4320 key resistance area so far. This fact keeps the H&S bearish scenario since the fall from 1.4695 intact but only a clear break below 1.4000 could lead us to further bearish continuation. The bias is bearish in nearest term 1.4125/50. A clear break below that area would reopen the door for another retest of 1.4000.  On the upside, the inverse H&S bullish scenario would have further validation by a clear break above 1.4320 resistance area.

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