EURUSD Forecast:

The EURUSD attempted to push lower yesterday, bottomed at 1.2234 but closed higher at 1.2395 in a volatile market. Price was traded lower around 1.2340 at the time I wrote this comment in Asian session as bullish pressure seems to lose some momentum. However on daily chart below we have a hammer candle stick formation, which is a bullish pattern. Of course it’s too early for a bullish reversal scenario and the main scenario remains to the downside, but I never ignore any reversal/correction signal. Immediate support at 1.2320. Break below that area could trigger further bearish pressure testing 1.2230/00 area. Initial resistance at 1.2465 area. Break above that area could trigger further bullish momentum and could be an early warning of potential significant bullish correction signaled by the hammer at least testing 1.2500 key resistance area.

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