EURUSD Forecast

The EURUSD was indecisive yesterday, made a Doji on daily chart. The bias is neutral in nearest term but intraday technical bias still within a context of a bearish correction phase since the pullback from 1.4000/35 key resistance area. On h1 chart below we can see price is consolidating in a rectangle formation between 1.3940 – 1.3860 and need a clear break on either side to see clearer direction. Strong buying activities were seen around 1.3860 – 1.3830 on March 03 which formed a support area at this phase so if you are interested to short this pair, better watch that support area closely. A clear break below 1.3830 would continue the bearish correction testing 1.3740/00 support area, but note that the major bullish scenario should remains intact and only a clear break below 1.3700 would be a serious threat to the bullish scenario. We also have an important daily candle stick formation, a shooting star which seen on Monday, just after the failure to make a clear break above 1.4000/35 indicates downside pullback warning although for me it’s too early for a bearish reversal scenario now.  On the upside, a clear break above 1.3940 (yesterday’s high) would change the intraday technical bias to bullish retesting 1.4000/35 but bullish continuation scenario would have further validation only by a clear break above 1.4000/35 targeting 1.4281 as the shooting star formation bearish scenario would no longer valid. I personally prefer to long around 1.3740/00 or above 1.4035 where I see the best combination between my technical outlook and risk – reward ratio.

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